The publication of data relating to the first 9 months of 2022 did not bring major benefits to RCS MediaGroup shares. On the other hand, the results did not reveal any particular positive surprises. On the contrary, the management highlighted that in the absence of a worsening of health conditions and any consequences attributable to the conflict in Ukraine, it is possible to achieve positive margins in the fourth quarter of 2022, although slightly lower than those achieved in the same period of 2021. Here, then that we could be in the presence of Ftse Mib shares that could accelerate downwards
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Valuation according to fundamental analysis and analyst recommendations
The security is highly undervalued whatever the market multiple considered. If, for example, we consider the share’s price-to-earnings (PE) ratio, it is equal to 6.7x, one of the lowest in Piazza Affari. For example, considering only the stocks with a market capitalization of more than 100 million euros, it turns out that only 13 stocks, out of the 121 considered, have a PE lower than that of RCS MediaGroup. According to this parameter, in fact, the stock is undervalued by more than 80% compared to the reference sector average. The same level of undervaluation is confirmed by the fair value calculated with the discounted cash flow method.
At the moment, according to reports in specialized magazines, there are no analyst recommendations that are more recent than a year. For this reason it is not possible to express a realistic average target price.
The dividend yield of RCS MediaGroup is also of particular interest. At present it is around 9% and should remain at these levels in the coming years as well.
Shares of the Ftse Mib that could accelerate downwards: the indications of the graphic analysis
The title RCS MediaGroup (MI:RCS) closed the session of 23 November at 0.640 euro, unchanged compared to the previous session.
The last few sessions have highlighted a negative trend of the stock which could soon reach an important support (0.626 euro area) below which the quotations could accelerate downwards. In this case, the most probable target could become the 0.587 euro area (1st price target). Since this support has already acted as a springboard for the title in the past, its failure to hold could cause an acceleration towards the objectives indicated in the figure. In this case, the maximum bearish extension could go to be placed in the 0.381 euro area.
Only a daily closing above 0.651 euro could lead to a bullish reversal with targets in the 0.75 euro area.