After a rise not seen since 2020, Buzzi Unicem shares take a breather

Upside had to be and upside it was. Now, after a rise not seen since 2020, Buzzi Unicem shares seem to be taking a breather. This situation, however, could turn into a buying opportunity. As we have repeatedly written that Buzzi Unicem is one of the best stocks on Piazza Affari. Overall, in fact, considering the dividend, the undervaluation, the financial situation and past and future earnings, the stock ranks among the top five places of this special ranking which sees Stellantis soar in first place.

On the other hand, the data for the first nine months of 2022 was quite good. Net revenues exceeded 3 billion euros, up 18.2% on the 2.54 billion euros recorded in the same period of the previous year. At the end of September 2022, the net financial position was positive for 327.8 million euros, an improvement compared to 235.5 million at the beginning of the year.

From a valuation point of view, Buzzi Unicem shares are always undervalued whatever the indicator used. For example, in terms of earnings multiples, price/earnings ratio, the stock is at a discount of about 40% compared to the average of its competitors. The same level of undervaluation is also confirmed by the Price to Book ratio and the relatively low price to turnover ratio compared to other companies in the sector.

According to analysts, the average target price expresses an underestimation of around 25%. However, it should be noted that analyst recommendations have a wide dispersion of the average target prices presented.

After a rise not seen since 2020, Buzzi Unicem shares take a breather: the indications of the graphic analysis

The title Buzzi Unicem (MIL: BUZ) closed the session of 23 November at 17.525 euros, up 0.60% on the previous session.

For about 15 sessions now, the quotations, set on the rise, have been moving around the most probable price target in the 17.455 euro area. The future of the stock, therefore, will depend on which way the price will move with respect to this temporary equilibrium level.

Given the extreme indecision of prices, it is important to identify levels beyond which the probability that the directional movement will be confirmed could increase. In this sense, a daily closing above 18.177 euros could be an important confirmation of a bullish acceleration whose objectives are indicated in the figure.

On the downside, however, a confirmation of the bearish reversal could come from a daily closing below 16.733 euros. In this case, a return to the 15 euro area could be very probable.

buzzi unicem

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