VALLOUREC ● The share is getting closer to its long-term support in weekly data, at EUR 4.2, which offers good timing for buyers.
● Share prices are approaching a strong support area in daily data, which offers good timing for investors.
● Growth is a substantial asset for the company, as anticipated by dedicated analysts. Within the next three years, growth is estimated to reach 53% by 2019.
● As regards fundamentals, the enterprise value to sales ratio is at 1.03 for the current period. Therefore, the company is undervalued.
● Over the last 4 months, analysts have significantly revised upwards the company's estimated sales.
● Over the past year, analysts have regularly revised upwards their sales forecast for the company.
● The average target price set by analysts covering the stock is above current prices and offers a tremendous appreciation potential.
Weaknesses
● The company has insufficient levels of profitability.
● The company is in debt and has limited leeway for investment
● Prospects from analysts covering the stock are not consistent. Such dispersed sales estimates confirm the poor visibility into the group's activity.
● For the last four months, EPS estimates made by Thomson-Reuters analysts have been revised downwards.
● For the past year, analysts have significantly revised downwards their profit estimates.
● The underlying tendency is negative on the weekly chart below the resistance at 5.62 EUR
