Ipsos SA : Close to a support level

07/09/2020 | 03:27am EST

Jordan Dufee

long trade Target price hit

Entry price : 22.1€ | Target : 24.3€ | Stop-loss : 20.8€ | Potential : 9.95%

Ipsos SA shares have been stuck in a horizontal trading range. Investors could benefit from a return of the share price to the lower level of the trading range to build up new long positions. Investors have an opportunity to buy the stock and target the € 24.3.

Summary

• The company has solid fundamentals for a short-term investment strategy.

Strengths

• The company has attractive valuation levels with a low EV/sales ratio compared with its peers.
• The company's attractive earnings multiples are brought to light by a P/E ratio at 12.75 for the current year.
• 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

• Revenue estimates are regularly revised downwards for the current and coming years.
• For the last twelve months, sales expectations have been significantly downgraded, which means that less important sales volumes are expected for the current fiscal year over the previous period.
• For the last few months, analysts have been revising downwards their earnings forecast.
• For the last 12 months, analysts have been regularly downgrading their EPS expectations. Analysts predict worse results for the company against their predictions a year ago.

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