Beijer Ref AB : A medium term support level to take advantage of
Entry price | Target | Stop-loss | Potential |
---|
SEK 134.6 |
SEK 153 |
SEK 128 |
+13.67% |
---|
Pursuant to the correction that has taken place in recent weeks with respect to the shares in Beijer Ref AB (publ), further downside risk now appears limited by close and important technical support levels at 131.3 SEK.
Summary● The company has strong fundamentals. More than 70% of companies have a lower mix of growth, profitability, debt and visibility.
Strengths● Growth progress expectations are rather promising. Indeed, sales are expected to rise sharply in the coming years.
● Over the past year, analysts have regularly revised upwards their sales forecast for the company.
● Upward revisions of sales forecast reflect a renewed optimism among the analysts covering the stock.
● The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.
● Considering the small differences between the analysts' various estimates, the group's business visibility is good.
Weaknesses● With an expected P/E ratio at 30.52 and 25.75 respectively for both the current and next fiscal years, the company operates with high earnings multiples.
● In relation to the value of its tangible assets, the company's valuation appears relatively high.
● The company is not the most generous with respect to shareholders' compensation.
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