CGG : Close to major technical levels

01/14/2020 | 09:18am EST

Laurent Polsinelli

short sell Target price hit

Entry price : 2.893€ | Target : 2.59€ | Stop-loss : 3.13€ | Potential : 10.47%

The resistance zone around 2.98 EUR on the weekly chart shuold rein in spikes to the upside. The timing to get ahead of the start of a correction in shares of CGG seems very opportune. Investors should open a short trade and target the € 2.59.

Summary

• For a short-term investment strategy, the company has poor fundamentals.

Strengths

• Over the last seven days, analysts have been revising upwards their EPS estimates for the company.
• For the last twelve months, analysts have been gradually revising upwards their EPS forecast for the upcoming fiscal year.
• Within the weekly time frame the stock shows a bullish technical configuration above the support level at 1.99 EUR

Weaknesses

• Stock prices approach a strong long-term resistance in weekly data at EUR 2.98.
• Technically, the stock approaches a strong medium-term resistance at EUR 3.03.
• With relatively low growth outlooks, the group is not among those with the highest revenue growth potential.
• The company sustains low margins.
• Prospects from analysts covering the stock are not consistent. Such dispersed sales estimates confirm the poor visibility into the group's activity.
• Financial statements have repeatedly disappointed market stakeholders. Most often, they were below expectations.
• For the last four months, EPS estimates made by Standard & Poor's analysts have been revised downwards.

© MarketScreener.com 2020

	Stocks mentioned in the article	Change	Last		1st jan.
	AT HOME GROUP INC.	0.73%	24.93		61.25%
	BYD COMPANY LIMITED	2.50%	254.6		25.30%
	CGG	-7.07%	0.873		7.78%

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