CIE Automotive, S.A. shares are trading close to a major technical resistance, which, if broken, could yield new upside potential and an increase in volatility. This scenario can be anticipated.
Summary
● The company has solid fundamentals for a short-term investment strategy.
Strengths
● Considering the small differences between the analysts' various estimates, the group's business visibility is good.
● The tendency within the weekly time frame is positive above the technical support level at 16.1 EUR
Weaknesses
● Stock prices approach a strong long-term resistance in weekly data at EUR 25.46.
● With relatively low growth outlooks, the group is not among those with the highest revenue growth potential.
● The company is in debt and has limited leeway for investment
● For the last twelve months, sales expectations have been significantly downgraded, which means that less important sales volumes are expected for the current fiscal year over the previous period.
● 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 three month average target prices set by analysts do not offer high potential in comparison with the current prices.
CIE Automotive SA is a Spain-based company engaged, through its subsidiaries, in the production of biofuels, as well as in the supply of components and subassemblies for the automotive industry. The Company is also involved in the Information Technology (IT) sector, with the provision of technological solutions for the healthcare, education, sustainability, transport and communications sectors. The Company is a parent of Grupo CIE Automotive, a group which comprises a number of controlled entities with operations established in Spain, Portugal, France, Lithuania, Morocco, Czech Republic, Romania, Brazil, Argentina, China, Russia, Guatemala and Mexico, among others. The Company has such subsidiaries as Global Dominion Access SA, CIE Inversiones e Inmuebles Sociedad Limitada and CIE Berriz Sociedad Limitada, among others. In February 2014, the Company acquired a 50% stake in RS Automotive NV owned by VEP Fund I Holding Cooperatief WA.
CIE AUTOMOTIVE, S.A. 
