Michelin (CGDE) : Expectation of a turn-around
Entry price | Target | Stop-loss | Potential |
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€0 |
€112 |
€99.5 |
+∞% |
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The timing from a technical point of view appears attractive to go long in shares of Michelin and to anticipate a trend reversal.
Summary● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
● In a short-term perspective, the company has interesting fundamentals.
Strengths● The group usually releases upbeat results with huge surprise rates.
● The company has attractive valuation levels with a low EV/sales ratio compared with its peers.
● Its low valuation, with P/E ratio at 10.39 and 9.22 for the ongoing fiscal year and 2021 respectively, makes the stock pretty attractive with regard to earnings multiples.
Weaknesses● According to Standard & Poor's' forecast, revenue growth prospects are expected to be very low for the next fiscal years.
● For the last four months, the sales outlook for the coming years has been revised downwards. No recovery of the group's activities is yet foreseen.
● For the past seven days, analysts have been lowering their EPS expectations for the company.
● For the last few months, analysts have been revising downwards their earnings forecast.
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