The best shares on the Milan Stock Exchange according to analysts

All the specialized journals always report what are called the recommendations of the analysts. In essence, the experts express their opinion on listed companies indicating, among other things, the target price.

Some magazines also calculate the average of the target price. We have analyzed this information and calculated the best shares in Piazza Affari according to the analysts using as a parameter for the classification the current level of undervaluation compared to the average target price.

According to this approach, the best stock was SECO with an undervaluation compared to the average target price of over 100%. It should be noted that the dispersion in the objectives indicated by the analysts is just over 10%. In this special ranking SECO is followed by Danieli and Stellantis.

If, on the other hand, you look at the valuation based on fundamental analysis, it turns out that the stock is heavily overvalued. For example, the price-to-earnings ratio is about four times higher than the industry average. The ratio between price and turnover is also very high (3) not only compared to the reference sector, but also in absolute terms.

The best shares in Piazza Affari according to analysts: the indications of the graphic analysis

The title SECO (MIL: IOT) closed the trading day of 20 September at 4.22 euros, down 5.13% compared to the previous session.

After a rise that led the stock to gain more than 150% between August and December 2021, a decline began, still in progress, which led to a decline of around 60%.

At the moment, therefore, the prices are directed towards the most probable target in the 3.678 euro area (I price target) with a single obstacle on the bearish path placed in the 4.156 euro area. Should the decline continue, the subsequent targets are placed in the € 2.426 area (price target II) and € 1.174 area (price target II).

The bulls, on the other hand, could regain control of the current trend in the event of a daily close above € 4.452. In this case, a return to the 7 euro area could be probable.

Recommended reading

One of the best shares of Piazza Affari is in the balance between rise and fall

The results of the forecasts in this article are based on statistical calculations explained in the ebooks published by ProiezionidiBorsa and processed on the basis of the available price history. (We also remind you to carefully read the warnings regarding this article and the author’s responsibilities, which can be consulted HERE”)

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