● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
Strengths
● Graphically speaking, the timing seems perfect for purchasing the stock close to the BRL 50.81 support.
● Analysts expect a sharply increasing business volume for the group, with high growth rates in the coming years.
● Over the last seven days, analysts have been revising upwards their EPS estimates for the company.
● For the last twelve months, analysts have been gradually revising upwards their EPS forecast for the upcoming fiscal year.
● The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.
● The stock is in a well-established, long-term rising trend above the technical support level at 44.7 BRL
Weaknesses
● The group shows a rather high level of debt in proportion to its EBITDA.
● With a 2021 P/E ratio at 30.3 times the estimated earnings, the company operates at rather significant levels of earnings multiples.
● The company is not the most generous with respect to shareholders' compensation.