Legrand : One could take advantage of the market's hesitation
Entry price | Target | Stop-loss | Potential |
---|
€89.94 |
€96 |
€87 |
+6.74% |
---|
The fact that share price is returning to the lower bounds of the trading range offers a good timing to enter into new long positions in Legrand.
Summary● The company has strong fundamentals. More than 70% of companies have a lower mix of growth, profitability, debt and visibility.
● The company has a good ESG score relative to its sector, according to Refinitiv.
Strengths● The group's high margin levels account for strong profits.
● Predictions on business development from analysts polled by Standard & Poor's are tight. This results from either a good visibility into core activities or accurate earnings releases.
● Historically, the company has been releasing figures that are above expectations.
Weaknesses● With relatively low growth outlooks, the group is not among those with the highest revenue growth potential.
● The company appears highly valued given the size of its balance sheet.
● For the last four months, the sales outlook for the coming years has been revised downwards. No recovery of the group's activities is yet foreseen.
● The average consensus view of analysts covering the stock has deteriorated over the past four months.
● Over the past twelve months, analysts' opinions have been revised negatively.
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