DELHAIZE GROUP : Positive opinion above 41.05 EUR

01/24/2012 | 04:32am Opinion : Bullish above 41.05 EUR Target price : 46.85 EUR Stop loss: 39.5 EUR

EURONEXT BRUXELLES Food Distribution / Convenience Stores

The company "Delhaize Group" shows relatively strong fundamentals and is coming back to attractive price

The stock Delhaize Group is in oversold situation and in proximity of an important level 41.1 EUR. This scenario gives credit to possible technical rebound. Thus the Delhaize Group 's share price could find new energy and moving towards next resistance placed to 43.9 EUR.

From a fundamental viewpoint, the company seems weak valued in terms of enterprise value. Basing on the current price, the enterprise's capitalization, reprocessed its financial position net of debt, representing approximately 0.32 times its turnover. These value match just 8.54 and 8.58 times the two next years' results.

Therefore, we might consider the support's proximity of 41.05 EUR as an opportunity to buy Delhaize Group's share. We will aim at first target price of 43.9 EUR that is potential gain of 3.7%. Only if the security overcomes this resistance's level we could forecast an upwards trend. We should cover the position with a stop loss under the support's level already tested.

Etienne Veber Copyright (c) 2013 4-Traders.com

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