LEONI ● Historically, the company has been releasing figures that are above expectations.
● The company shows low valuation levels, with an enterprise value at 0.38 times its sales.
● The stock is in a well-established, long-term rising trend above the technical support level at 29.47 EUR
Weaknesses
● The stock is close to a major daily resistance at EUR 36.39, which should be gotten rid of so as to gain new appreciation potential.
● According to Thomson-Reuters' forecast, revenue growth prospects are expected to be very low for the next fiscal years.
● Sales estimates for the next fiscal years vary from one analyst to another. This clearly highlights a lack of visibility into the company's future activity.
● With an expected P/E ratio at 43.14 and 11.3 respectively for both the current and next fiscal years, the company operates with high earnings multiples.
● For the last twelve months, the analysts covering the company have given a bearish overview of EPS estimates, resulting in frequent downward revisions.
● For the past year, analysts have significantly revised downwards their profit estimates.
● The appreciation potential seems limited due to the average target prices set by the analysts covering the stock.
