Royal Dutch Shell plc : The technical configuration is positive

05/10/2021 | 04:37am EDT

Tommy Douziech

long trade Target price hit

Entry price : 16.728€ | Target : 18.55€ | Stop-loss : 15.4€ | Potential : 10.89%

Shares in Royal Dutch Shell plc do not show any sign of a slowdown in the ascending dynamic. Investors could bet on a continuation of the underlying trend. Investors have an opportunity to buy the stock and target the € 18.55.

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 stock, which is currently worth 2021 to 0.68 times its sales, is clearly overvalued in comparison with peers.
• Its low valuation, with P/E ratio at 8.06 and 7.55 for the ongoing fiscal year and 2022 respectively, makes the stock pretty attractive with regard to earnings multiples.
• This company will be of major interest to investors in search of a high dividend stock.
• Upward revisions of sales forecast reflect a renewed optimism among the analysts covering the stock.
• For the last 4 months, the company has been enjoying highly positive EPS revisions, which were frequently and significantly raised.
• For the past year, analysts covering the stock have been revising their EPS expectations upwards in a significant manner.
• Analysts have a positive opinion on this stock. Average consensus recommends overweighting or purchasing the stock.
• The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.
• The tendency within the weekly time frame is positive above the technical support level at 14.13 EUR

Weaknesses

• Sales estimates for the next fiscal years vary from one analyst to another. This clearly highlights a lack of visibility into the company's future activity.
• For the last twelve months, sales expectations have been significantly downgraded, which means that less important sales volumes are expected for the current fiscal year over the previous period.

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