Mersen : The revival in interest should continue
Entry price | Target | Stop-loss | Potential |
---|
€28.35 |
€32.7 |
€25 |
+15.34% |
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Mersen shares have recently experienced an upward movement with a return of higher volumes and volatility. This technical chart pattern suggests a continuation of the upward movement.
Summary● In a short-term perspective, the company has interesting fundamentals.
Strengths● There is high visibility into the group's activities for the coming years. Outlooks on future revenues from analysts covering the equity remain similar. Such hardly dispersed estimates support highly predictable sales for the current and upcoming fiscal years.
● The company has attractive valuation levels with a low EV/sales ratio compared with its peers.
● Analysts covering this company mostly recommend stock overweighting or purchase.
Weaknesses● With relatively low growth outlooks, the group is not among those with the highest revenue growth potential.
● Financial statements have repeatedly disappointed market stakeholders. Most often, they were below expectations.
● For the last twelve months, the trend in sales revisions has been clearly going down, which emphasizes downgraded expectations from the analysts.
● For the past seven days, analysts have been lowering their EPS expectations for the company.
● For the past year, analysts have significantly revised downwards their profit estimates.
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