Alstom : A good timing to anticipate a change in the trend

03/24/2021 | 02:45am EDT

long trade Target price hit

Entry price : 40.58€ | Target : 44€ | Stop-loss : 38.5€ | Potential : 8.43%

The technical chart pattern of Alstom stock suggests the beginning of a trend reversal over the medium term. Investors have an opportunity to buy the stock and target the € 44.

Summary

• The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
• The company has poor fundamentals for a short-term investment strategy.

Strengths

• According to sales estimates from analysts polled by Standard & Poor's, the company is among the best with regard to growth.
• The group usually releases upbeat results with huge surprise rates.
• Over the last 4 months, analysts have significantly revised upwards the company's estimated sales.
• Over the last twelve months, the sales forecast has been frequently revised upwards.
• Analysts covering this company mostly recommend stock overweighting or purchase.
• The average target price set by analysts covering the stock is above current prices and offers a tremendous appreciation potential.

Weaknesses

• Sales estimates for the next fiscal years vary from one analyst to another. This clearly highlights a lack of visibility into the company's future activity.
• With a 2021 P/E ratio at 28.99 times the estimated earnings, the company operates at rather significant levels of earnings multiples.
• The firm pays small or no dividend to shareholders. For that reason, it is not a yield company.
• For the last twelve months, the analysts covering the company have given a bearish overview of EPS estimates, resulting in frequent downward revisions.

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