The share is getting closer to its long-term support in weekly data, at BRL 3.37, which offers good timing for buyers.
Share prices are approaching a strong support area in daily data, which offers good timing for investors.
As regards fundamentals, the enterprise value to sales ratio is at 1.31 for the current period. Therefore, the company is undervalued.
Its low valuation, with P/E ratio at 11.46 and 10.13 for the ongoing fiscal year and 2022 respectively, makes the stock pretty attractive with regard to earnings multiples.
The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.
Weaknesses
The company is in debt and has limited leeway for investment
Prospects from analysts covering the stock are not consistent. Such dispersed sales estimates confirm the poor visibility into the group's activity.
The company's earnings releases usually do not meet expectations.
The company's sales previsions for the coming years have been revised downwards, which foreshadows another slowdown in business.
For the last few months, analysts have been revising downwards their earnings forecast.
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 4.43 BRL
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