Air France-KLM : A pullback can be expected
Entry price | Target | Stop-loss | Potential |
---|
€8.94 |
€7.55 |
€9.04 |
+15.51% |
---|
Blocked by a resistance situated at 9.04 EUR, stocks in Air France-KLM do not appear to be able to achieve further gains in the short term. Investors should rather expect a downward move which should be considered the most probable scenario with a target at 8.15 EUR.
Strengths● The stock, which is currently worth 2019 to 0.39 times its sales, is clearly overvalued in comparison with peers.
● The equity is one of the most attractive in the market with regard to earnings multiple-based valuation.
Weaknesses● The share is close to its long-term resistance in weekly data. Therefore, the potential should be limited. However, a further bullish movement when crossing this resistance will be a positive signal.
● With relatively low growth outlooks, the group is not among those with the highest revenue growth potential.
● Low profitability weakens the company.
● Prospects from analysts covering the stock are not consistent. Such dispersed sales estimates confirm the poor visibility into the group's activity.
● For the past seven days, analysts have been lowering their EPS expectations for the company.
● For the last four months, earnings estimated by analysts have been revised downwards with respect to the next two years.
● For the last 12 months, analysts have been regularly downgrading their EPS expectations. Analysts predict worse results for the company against their predictions a year ago.
● The underlying tendency is negative on the weekly chart below the resistance at 9.41 EUR
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