The technical support around 39.3 EUR emanating from daily closing prices could trigger a technical rebound for Direct Energie shares. Investors have an opportunity to buy the stock and target the € 45.9.
The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
The current area is a good opportunity for investors interested in buying the stock in a mid or long-term perspective. Indeed, the share is moving closer to its lower bound at EUR 39.32 EUR in weekly data.
The close medium term support offers good timing for purchasing the stock.
Analysts expect a sharply increasing business volume for the group, with high growth rates in the coming years.
As regards fundamentals, the enterprise value to sales ratio is at 0.96 for the current period. Therefore, the company is undervalued.
Over the last twelve months, the sales forecast has been frequently revised upwards.
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 39.32 EUR
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.
The firm pays small or no dividend to shareholders. For that reason, it is not a yield company.
For the last four months, earnings estimated by analysts have been revised downwards with respect to the next two years.
For the past year, analysts have significantly revised downwards their profit estimates.