VERBUND AG shares have recently benefited from a buyers' comeback, which was accompanied by a rise in volumes and volatility. This situation suggests a continuation of the upward dynamic. Investors have an opportunity to buy the stock and target the € 55.1.
Strengths
The company returns high margins, thereby supporting business profitability.
The group usually releases upbeat results with huge surprise rates.
Weaknesses
Stock prices approach a strong long-term resistance in weekly data at EUR 49.64.
The stock is close to a major daily resistance at EUR 52.45, which should be gotten rid of so as to gain new appreciation potential.
With an enterprise value anticipated at 4.97 times the sales for the current fiscal year, the company turns out to be overvalued.
Most analysts recommend that the stock should be sold or reduced.
The three month average target prices set by analysts do not offer high potential in comparison with the current prices.
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