After the slip in September, the De Longhi title is struggling to recover. The levels to monitor

After the slip in September, the De Longhi title is struggling to recover. As reported in the previous report, the triggering cause of this profound decline was the sale of approximately 6 million shares, equal to approximately 4% of the capital by the president Giuseppe De Longhi at a price of 35.38 euros. Obviously, the stock on the stock market had immediately adapted, but the reaction was not limited to this. The descent, in fact, has continued and shows no signs of subsiding.

After the mid-August report, the stock movement was textbook. We had indicated the key level to monitor at the end of the week in the 40.2 euro area. Well, this resistance was never overcome and of course the stock went down the path.



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With the closing on 17 September, then, the break of the strong support in the 34.72 euro area (first price target) opens the door for further falls. The next target, in fact, is in the 29.14 euro area (II price target). The maximum extent of the decline is in the area of ​​€ 23.56 (price target III).

After the slip in September, the De Longhi title is struggling to recover. The levels to monitor

Only an immediate recovery of the 34.72 euro area at the end of the week would make the upward trend return. A recovery that did not take place and that brought the prices into contact with the II price target in the 29.14 euro area. So far this support has held up, but you have to be very careful for new, possible, bearish accelerations. Already the weekly closing on September 26 could have a strong impact in this sense.

We remind you that the closing of De Longhi (MIL-DLG) on 24 November was € 30.44 up by € 0.66% compared to the previous session.

For the sake of completeness, we remind you that in a previous report we showed that in 10 years the probability of a positive return is 100% with an average cumulative return of 745.71%. For those who love Buy & Hold investment, therefore, De Longhi is one of the best stocks on the Stock Exchange.

The evaluation of the title

The recent decline has meant that some indicators show some undervaluation of the stock. In particular, the fair value, calculated using the discounted cash flow method, shows a 14% undervalued security. The other indicators, on the other hand, are in line or overestimated with respect to the average for the reference sector.

According to analysts covering the stock, however, the average consensus is accumulate with an average target price that expresses an undervaluation of around 35%.


(We remind you to carefully read the warnings regarding this article, which can be consulted WHO”)

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