Volkswagen AG : The underlying trend is to the upside

05/19/2021 | 05:54am EDT

Jordan Dufee

long trade Target price hit

Entry price : 213.35€ | Target : 244.4€ | Stop-loss : 194.4€ | Potential : 14.55%

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 € 244.4.

Summary

• The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
• The company has solid fundamentals for a short-term investment strategy.

Strengths

• The company is in a robust financial situation considering its net cash and margin position.
• The group usually releases upbeat results with huge surprise rates.
• The stock, which is currently worth 2021 to 0.31 times its sales, is clearly overvalued in comparison with peers.
• Its low valuation, with P/E ratio at 8.13 and 7.17 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.
• Sales forecast by analysts have been recently revised upwards.
• For the last 4 months, the company has been enjoying highly positive EPS revisions, which were frequently and significantly raised.
• For the last twelve months, analysts have been gradually revising upwards their EPS forecast for the upcoming fiscal year.
• Analysts covering this company mostly recommend stock overweighting or purchase.
• The average target price set by analysts covering the stock is above current prices and offers a tremendous appreciation potential.
• The stock is in a well-established, long-term rising trend above the technical support level at 176.64 EUR

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