Munich Re : The bullish impetus is not depleted
February 20, 2013 at 04:06 am EST
By
Entry price | Target | Stop-loss | Potential |
---|
€136.45 |
€146.3 |
€133.9 |
+7.22% |
---|
Muenchener Rueckversicherungs-Ges. could exceed the symbolic threshold of EUR 139.1.
Regarding the fundamentals, we note the low valuation of the group with a ratio "enterprise value/EBITDA" equal to 0.51. Moreover, the security is still cheap with a PER of 8.57x for 2013. Besides, EPS estimates have been regularly revised upward this year.
Technically, prices continue to increase sharply for several month. On all time scales, all indicators are green and moving averages are well oriented. The security is now moving toward the mid-term resistance located at EUR 139.1 and seems able to breakout it soon. This crossing would provide a strong buy signal, with in line of sight the EUR 146.3. Furthermore, it corresponds to an exit of a range which appeared in November.
Given these elements, most active investors could take a buy position and aim to cross the EUR 139.1 resistance for a new bullish signal. The objective will be set at 146.3 EUR. A stop loss must be placed below the EUR 135.7 pivot point, threshold that would invalidate the bullish strategy.
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.