For De Longhi shares, the rise is not yet guaranteed
After about ten sessions at the end of which the quotations had remained substantially unchanged, De Longhi shares amazed in Piazza Affari with an increase of about 5%. In a single blow, resistances were knocked down and important signs of reversal appeared. However, it is not entirely obvious what could happen in the next few days.
De Longhi shares amaze in Piazza Affari: what could happen in the next few days?
The title DeLonghi (MIL:DLG) closed the session of 23 February at €22.88, up 4.67% on the previous session.
DeLonghi is one of the few shares of Piazza Affari that has a very interesting feature. In the long run, 10 years, the probability of having a positive return is 100% with an average annual return of around 70%. If, on the other hand, you go down at 5 years this probability drops to 76.5%. We are, therefore, in the presence of an interesting share even if it is not certain that these results will be repeated in the future.
For the short term this is observed sharp rise daily that cleared the way towards achieving the goal most likely bullish in area 24 €. Then, when this level is broken, the subsequent targets could go to be placed in the €27 and €30 area.
It should be noted that the €24 area had already slowed down De Longhi’s upward run in the past.
A clear bearish signalhowever, could come from one daily closing lower than €21.90.
Fundamental analysis
Whatever the indicator used, the analysis through market multiples returns a overvalued stock compared to the reference sector average. For example, the price-to-earnings ratio expresses an overvaluation of about 30%.
The fair valuecalculated with the discounted cash flow method, however, expresses an underestimation of about 5%. If, on the other hand, we turn to the analysts’ recommendations, we discover that the average target price expresses an overvaluation of about 5%.
Of interest is the financial situation with a liquidity index of around 2 and a debt-to-capitalization ratio of just over 60%.
Articles that may interest you
Rising Stock Markets: Buy or Sell?
Interesting bullish break for shares that have been rising for 2 months
