Leonardo S.p.A. : The trend should regain control
Entry price | Target | Stop-loss | Potential |
---|
€7.7 |
€11.7 |
€6 |
+51.95% |
---|
The timing appears opportune to go long in shares of Leonardo S.p.A. as we anticipate another pick-up in the underlying trend.
Summary● The company presents an interesting fundamental situation from a short-term investment perspective.
● According to Refinitiv, the company's ESG score for its industry is good.
Strengths● The company's earnings per share (EPS) are expected to grow significantly over the next few years according to the consensus of analysts covering the stock.
● The equity is one of the most attractive in the market with regard to earnings multiple-based valuation.
● The company is one of the most undervalued, with an "enterprise value to sales" ratio at 0.55 for the 2021 fiscal year.
● The company appears to be poorly valued given its net asset value.
● For the last few months, EPS revisions have remained quite promising. Analysts now anticipate higher profitability levels than before.
● The group usually releases upbeat results with huge surprise rates.
Weaknesses● With relatively low growth outlooks, the group is not among those with the highest revenue growth potential.
● The average consensus view of analysts covering the stock has deteriorated over the past four months.
● The price targets of analysts who cover the stock differ significantly. This implies difficulties in evaluating the company and its business.
The content herein constitutes a general investment recommendation, prepared in accordance with provisions aimed at preventing market abuse by Surperformance, the publisher of MarketScreener.com. More specifically, this recommendation is based on factual elements and expresses a sincere, complete, and balanced opinion. It relies on internal or external data, considered reliable as of the date of their release. Nevertheless, this information, and the resulting recommendation, may contain inaccuracies, errors, or omissions, for which Surperformance cannot be held responsible. This recommendation, which in no way constitutes investment advice, may not be suitable for all investor profiles. The reader acknowledges and accepts that any investment in a financial instrument involves risks, for which they assume full responsibility, without recourse against Surperformance. Surperformance commits to disclosing any conflict of interest that may affect the objectivity of its recommendations.