Shares in LEM Holding SA have recently benefitted from a regain of interest by market participants. The technical chart pattern suggests a continuation of the upward movement. Investors have an opportunity to buy the stock and target the CHF 3200.
The company has strong fundamentals. More than 70% of companies have a lower mix of growth, profitability, debt and visibility.
The company presents an interesting fundamental situation from a short-term investment perspective.
Before interest, taxes, depreciation and amortization, the company's margins are particularly high.
The company returns high margins, thereby supporting business profitability.
The company is in a robust financial situation considering its net cash and margin position.
Over the last twelve months, the sales forecast has been frequently revised upwards.
Analysts remain confident with respect to the group's activity and, more often than not, have revised upwards their earnings per share estimates.
The average price target of analysts who are interested in the stock has been strongly revised upwards over the last four months.
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.
Analysts' price targets are all relatively close, reflecting good visibility on the company's valuation.
Historically, the company has been releasing figures that are above expectations.
With an expected P/E ratio at 47.79 and 41.98 respectively for both the current and next fiscal years, the company operates with high earnings multiples.
The company's "enterprise value to sales" ratio is among the highest in the world.
In relation to the value of its tangible assets, the company's valuation appears relatively high.
The valuation of the company is particularly high given the cash flows generated by its activity.
The appreciation potential seems limited due to the average target prices set by the analysts covering the stock.
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