In the past few sessions, Freenet shares have suffered from a sharp fall and is now coming back to significant level support.

From a fundamental viewpoint, the security is cheap with a P/E Ratio of 12.9x for 2016 and 12.3x for 2017. Besides, EV/Sales is low with a ratio at 1.28x for this year.

Technically, the security is in a negative configuration in the different time horizon. Nevertheless, the stock seems in an oversold situation, near to its EUR 24.27 support in daily data, and should fill-in the gap opened recently.

Thanks to the technical pattern and freenet’s strong fundamentals, active investors can open long trades above EUR 24.3. The downside potential is limited and the timing seems perfect to benefit from a technical rebound.
The goals will be fixed at EUR 25.9 in a first time and then at EUR 27.9.
However, a bearish trend would regain the upper hand if the security crosses EUR 24.3.