The key supports of ELES are about to break and the bearish push could gain even more strength

Despite the strong undervaluation, the key supports of ELES are about to give way and the bearish push could gain even more strength.

We have been writing about the atavistic underestimation of the title for many months now, but despite this clear situation the title is unable to take off. Indeed, bearish forecasts continue to prevail. For example, when in July we wrote the report The ELES stock remains very interesting but this is not the time to buy, the prices were in the 4 euro area. Since then, after a period of strong laterality, prices have again taken the path of decline. In particular, the closure of November 26 could definitively sanction the breaking of the support in the 3.61 euro area (1st price target) with consequent downward acceleration towards the 2nd price target in the 3.05 euro area. The maximum extent of the decline is in the € 2.49 area.

“HYCM”/

Only a weekly close above 3.61 euros would restore strength to the bulls.

But how much is the undervaluation of the ELES stock?

Our calculations, carried out taking into account the financial statements of the last 4 years, lead to a fair value in the area of ​​approximately 9 euros. A similar level of undervaluation is obtained by considering other indicators such as the profit / price ratio and the Price to Book ratio.

Another strong point, then, for the stock are the prospects for future earnings growth. Its core business, in fact, has significant growth potential and sales are expected to increase, according to Standard & Poor’s forecasts by 89% by 2023.

Finally, analysts also have an average consensus to buy with a target price that expresses an undervaluation of around 50%.

The key supports of ELES are about to give way and the bearish push could take even more strength: the indications of the graphical analysis

The stock title THEY (MILELES) closed the session on 25 November at 3.55 euros, up 0.28% compared to the previous session.

Weekly time frame

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

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