Back on an important level

10/06/2017 | 04:06pm

The medium term support area around 60.5 CHF should allow Implenia AG shares to re-establish an upward trend in the short term.

Summary

● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.


Strengths

● 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 CHF 62.6 CHF in weekly data.

● The company is one of the most undervalued, with an "enterprise value to sales" ratio at 0.2 for the 2017 fiscal year.

● The company is one of the best yield companies with high dividend expectations.

● 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.


Weaknesses

● The company's valuation in terms of earnings multiples is rather high. Indeed, the firm is getting paid 37.44 times its estimated earnings per share for the ongoing year.

● The company's sales previsions for the coming years have been revised downwards, which foreshadows another slowdown in business.

● 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.

● The underlying tendency is negative on the weekly chart below the resistance at 69.7 CHF

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