Leonardo S.p.A. : Buyers are coming back
Entry price | Target | Stop-loss | Potential |
---|
€7.58 |
€9.99 |
€5.45 |
+31.72% |
---|
Market participant are once again showing interest in shares in Leonardo S.p.A.. The technical chart pattern now appears positive for the short term with new upside potential.
Summary● The company has solid fundamentals for a short-term investment strategy.
Strengths● The group usually releases upbeat results with huge surprise rates.
● The stock, which is currently worth 2020 to 0.55 times its sales, is clearly overvalued in comparison with peers.
● Its low valuation, with P/E ratio at 11.37 and 7.71 for the ongoing fiscal year and 2021 respectively, makes the stock pretty attractive with regard to earnings multiples.
● Analysts have a positive opinion on this stock. Average consensus recommends overweighting or purchasing the stock.
● The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.
Weaknesses● The share is close to its long-term resistance in weekly data. Therefore, the potential should be limited. However, a further bullish movement when crossing this resistance will be a positive signal.
● With relatively low growth outlooks, the group is not among those with the highest revenue growth potential.
● For the last 12 months, analysts have been regularly downgrading their EPS expectations. Analysts predict worse results for the company against their predictions a year ago.
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