Edenred SE : Towards the breakout of a major resistance level
Entry price | Target | Stop-loss | Potential |
---|
€0 |
€54 |
€46.5 |
+∞% |
---|
Below the resistance zone that is currently being tested, the potential for new gains appears limited for shares in Edenred. The stock's technical chart pattern suggests however that the level will be broken.
Strengths● The group's activity appears highly profitable thanks to its outperforming net margins.
● There is high visibility into the group's activities for the coming years. Outlooks on future revenues from analysts covering the equity remain similar. Such hardly dispersed estimates support highly predictable sales for the current and upcoming fiscal years.
● Historically, the company has been releasing figures that are above expectations.
● Within the weekly time frame the stock shows a bullish technical configuration above the support level at 41.1 EUR
Weaknesses● Stock prices approach a strong long-term resistance in weekly data at EUR 48.67.
● Technically, the stock approaches a strong medium-term resistance at EUR 48.67.
● The group shows a rather high level of debt in proportion to its EBITDA.
● The company's "enterprise value to sales" ratio is among the highest in the world.
● The company's valuation in terms of earnings multiples is rather high. Indeed, the firm is getting paid 45.42 times its estimated earnings per share for the ongoing year.
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