Fiat Industrial SpA : Bet on Marchionni's skills
By Oscar Salza
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
€7.21 | €0 | €6.5 | -100% |
From a fundamental viewpoint, the company shows positive ratios with an estimated PER of 9.39x for the current year. Furthermore, the EV/Sales ratio is 0.4x and it confirms the low valuation. Revenues and operating margin growth rates add relevance to this investment.
From a technical viewpoint, the trend is neutral in the short term. The security is trading in a large range between EUR 7 and EUR 8. The latest downtrend pushed the security upon contact with important levels (in the long and mid-term). These supports, respectively at EUR 6.85 and EUR 7, could stop the bearish trend of these last days. Ideally, investors will take a long position nearby the EUR 7.08 support currently tested, in order to benefit from a technical rebound. The EUR 8 is the first goal. This strategy should be covered by a stop loss placed under the EUR 6.8 support because a breakdown of this level would invalidate it.