Poste Italiane S.p.A. : The trend should regain control

07/30/2021 | 04:03am EDT

Eduardo Yusseppe Quiñonez Diaz

long trade Stop-loss triggered

Entry price : 11.175€ | Target : 13.5€ | Stop-loss : 9.95€ | Potential : 20.81%

The current trading zone is interesting to the point that investors should pay attention to the stock and anticipate a return of the underlying upward trend. Investors have an opportunity to buy the stock and target the € 13.5.

Summary

• Overall, and from a short-term perspective, the company presents an interesting fundamental situation.

Strengths

• The company's attractive earnings multiples are brought to light by a P/E ratio at 10.28 for the current year.
• The company's share price in relation to its net book value makes it look relatively cheap.
• Given the positive cash flows generated by its business, the company's valuation level is an asset.
• The company is one of the best yield companies with high dividend expectations.
• Over the last twelve months, the sales forecast has been frequently revised upwards.
• Growth remains a strong point in this company. In their sales forecast, analysts sound optimistic with regard to sales prospects.
• For the last twelve months, analysts have been gradually revising upwards their EPS forecast for the upcoming fiscal year.
• For several months, analysts have been revising their EPS estimates roughly upwards.
• Analysts have a positive opinion on this stock. Average consensus recommends overweighting or purchasing the stock.
• Over the past four months, analysts' average price target has been revised upwards significantly.
• Consensus analysts have strongly revised their opinion of the company over the past 12 months.
• Considering the small differences between the analysts' various estimates, the group's business visibility is good.
• Historically, the company has been releasing figures that are above expectations.

Weaknesses

• With relatively low growth outlooks, the group is not among those with the highest revenue growth potential.
• The potential for earnings per share (EPS) growth in the coming years appears limited according to current analyst estimates.
• The company is in a hindered financial situation with significant debt and rather low EBITDA levels.
• Based on current prices, the company has particularly high valuation levels.
• The overall consensus opinion of analysts has deteriorated sharply over the past four months.

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