It has been about four years that the WIIT stock has not seen such a long series of weeks to fall. In fact, there are seven weeks that see the closing less than that of the previous week. After the timid attempt to rise following the achievement of important lows, prices have accelerated to the downside and now they no longer have obstacles along the path that leads to the most probable target in the 15.66 euro area (I price target). Failure to hold this support, then, could open the door to a bearish acceleration whose closest target could go to the 9 euro area. The most likely scenario, therefore, is that in the medium term the WIIT stock could continue to decline,
The bulls, on the other hand, could regain control of the current trend only in the case of weekly closings above 25.34 euros.
The evaluation of the WIIT
From a fundamentals point of view, the stock appears to be highly overvalued. The company, in fact, not only operates with very high multiples of profits, but also the prospects taking into account future profits are not encouraging. Additionally, the company’s enterprise value to sales report ranks it among the most expensive companies worldwide. For example, with an expected price-to-earnings ratio of 35.95 and 29.95, respectively, for the current and next fiscal years, the company is operating with very high earnings multiples. Finally, even with respect to the value of its assets (Price to Book ratio), the company’s valuation appears relatively high.
Among the strengths, however, we recall the EBITDA / turnover ratio of the company which is relatively important and generates high margins net of write-downs, depreciation and taxes. In the last 12 months, the expectations of future profits have been revised upwards several times. These upward revisions on revenue estimates in recent months indicate renewed optimism on the part of analysts dealing with the stock.
According to what is reported in specialized journals, analysts have an average consensus buy with a target price that expresses an undervaluation of around 68%.
In the medium term, the WiIT stock could continue to decline: the indications of the graphical analysis
The stock title WIIT (MILWIIT) closed the session on 11 May down by 2.84% compared to the previous session at 21.18 euros.
Weekly time frame
Money rain on the stock markets right on setup day. Will continue?