This Ftse Mib stock could slow down in the short term due to resistance

Once again the Webuild company confirms itself as a leader in the large construction sector by continuing to increase its order portfolio. Compared to the last update on the title, for example, new contracts have been signed, such as the one that will lead to the construction of the new breakwater in the port of Genoa. This project joins the many underway in Italy (from the third pass on the Genoa-Tortona railway line to the M4 underground line in Milan to the third mega-lot of the 106 Sibari-Roseto state road). These, then, are added to projects on a global scale such as the futuristic High Speed ​​Texas (a very fast railway line between Houston and Dallas), the Gran Paris Express (the very modern new Parisian metro) or the new bridge over the Bosphorus. Not to mention the state-of-the-art Al Bayt Stadium in so many ways.

Title evaluation

Whichever indicator you use, Webuild shares are undervalued. In particular, the Price to Book ratio expresses an undervaluation of over 70%. If we add to this the fact that the stock is valued at 0.2 times its turnover in 2022, we conclude that the valuation levels are very interesting compared to other listed companies, such as for example Maire Tecnimont with a value of 0, 3.

His financial situation is good. The liquidity index, in fact, tells us that the company can meet its commitments in the short term by using already liquid or liquid resources.

According to what is reported in specialized magazines, the average target price obtained considering the analysts’ recommendations expresses an underestimation of around 40%. Furthermore, the dispersion between the different recommendations is less than 9%, supporting an identity of view among the different analysts.

This Ftse Mib stock could slow down in the short term due to the resistance identified by the graphic analysis

The title Webuild (MIL:WBD) closed the session of November 24 down by 1.09% compared to the previous session at 1.538 euros.

The current trend is upwards and prices have almost reached the II price objective in the 1.587 euro area. Exceeding this target could open the door to an acceleration towards the maximum bullish extension in the 1.802 euro area (III price target).

Conversely, failure to break this resistance could lead to a retracement towards the support in the 1.372 euro area. Only if this level does not hold, however, could it lead to a trend reversal with a more probable target in the 1 euro area.

Therefore, this Ftse Mib title could slow down in the short term due to the resistances that will have to be monitored with particular attention.


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