Indra Sistemas, S.A. : The trend should continue

11/04/2021 | 05:59am EDT

Eduardo Yusseppe Quiñonez Diaz

long trade Stop-loss triggered

Entry price : 10.62€ | Target : 11.75€ | Stop-loss : 9.75€ | Potential : 10.64%

Market participant are once again showing interest in shares in Indra Sistemas, S.A.. The technical chart pattern now appears positive for the short term with new upside potential. Investors have an opportunity to buy the stock and target the € 11.75.

Summary

• The company presents an interesting fundamental situation from a short-term investment perspective.

Strengths

• The stock, which is currently worth 2021 to 0.68 times its sales, is clearly overvalued in comparison with peers.
• Sales forecast by analysts have been recently revised upwards.
• Analysts remain confident with respect to the group's activity and, more often than not, have revised upwards their earnings per share estimates.
• Analysts covering this company mostly recommend stock overweighting or purchase.
• Over the past four months, analysts' average price target has been revised upwards significantly.
• The opinion of analysts covering the stock has improved over the past four months.
• Over the past twelve months, analysts' opinions have been strongly revised upwards.

Weaknesses

• With relatively low growth outlooks, the group is not among those with the highest revenue growth potential.
• The company's earnings growth outlook lacks momentum and is a weakness.
• The company's profitability before interest, taxes, depreciation and amortization characterizes fragile margins.
• Sales estimates for the next fiscal years vary from one analyst to another. This clearly highlights a lack of visibility into the company's future activity.
• The price targets of analysts who cover the stock differ significantly. This implies difficulties in evaluating the company and its business.

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