The recent downturn has taken Soitec shares close to a medium term support level around 81.2 EUR. The timing for a long trade in the stock appears good. Investors have an opportunity to buy the stock and target the € 93.7.
The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
The company has poor fundamentals for a short-term investment strategy.
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.
The company returns high margins, thereby supporting business profitability.
The company is in a robust financial situation considering its net cash and margin position.
Historically, the company has been releasing figures that are above expectations.
Over the past year, analysts have regularly revised upwards their sales forecast for the company.
The average target price set by analysts covering the stock is above current prices and offers a tremendous appreciation potential.
With an enterprise value anticipated at 4.78 times the sales for the current fiscal year, the company turns out to be overvalued.
With a 2020 P/E ratio at 25.96 times the estimated earnings, the company operates at rather significant levels of earnings multiples.
For the last four months, the sales outlook for the coming years has been revised downwards. No recovery of the group's activities is yet foreseen.
Analysts covering the stock have recently lowered their earnings forecast.
For the last four months, EPS estimates made by Standard & Poor's analysts have been revised downwards.
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