Alfen N.V. : Technically solid

11/23/2020 | 03:59am EST

Jordan Dufee

long trade Target price hit

Entry price : 65.4€ | Target : 80€ | Stop-loss : 55€ | Potential : 22.32%

Alfen N.V. shares show a positive technical situation which suggests a continuation of the upward dynamic over the medium term. Investors have an opportunity to buy the stock and target the € 80.

Summary

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

Strengths

• Analysts expect a sharply increasing business volume for the group, with high growth rates in the coming years.
• Growth remains a strong point in this company. In their sales forecast, analysts sound optimistic with regard to sales prospects.
• Over the last twelve months, the sales forecast has been frequently revised upwards.
• For the last 4 months, the company has been enjoying highly positive EPS revisions, which were frequently and significantly raised.
• For the past year, analysts covering the stock have been revising their EPS expectations upwards in a significant manner.
• The stock is in a well-established, long-term rising trend above the technical support level at 30.35 EUR

Weaknesses

• With an enterprise value anticipated at 6.87 times the sales for the current fiscal year, the company turns out to be overvalued.
• The company's valuation in terms of earnings multiples is rather high. Indeed, the firm is getting paid 127.88 times its estimated earnings per share for the ongoing year.
• The appreciation potential seems limited due to the average target prices set by the analysts covering the stock.

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