Today’s closing for Brunello Cucinelli could be an excellent springboard

Historically, Brunello Cucinelli shares have always outperformed the industry average. The last year, however, was, by and large, quite weak. In particular, these first six months of 2022 have seen a negative performance of the stock for over 30%.

However, today’s closing for Brunello Cucinelli could be a great launching pad. As can be seen from the graph, in fact, the prices are in contact with the support in the 40 euro area which in the past has already offered an excellent resistance against bearish pressures.

A probable scenario, therefore, could be the one that sees the 40 euro area test and its holding at the end of the weekend. In this way the stock could rise at least up to the 60 euro area.

If, on the other hand, the support does not hold up, then the prices could move towards the most probable target in the 30.65 euro area (I price target). Then, the other bearish targets could be those indicated in the figure, with the maximum bearish extension in the 6 euro area.

The evaluation of the Brunello Cucinelli stock

From a market multiples point of view, the stock is highly overvalued. For example, the group’s valuation in terms of earnings multiples appears to be relatively high. In fact, the company is currently valued at 47.76 times the net earnings per share forecast for the current year.

This thing, however, is not surprising. In fact, in recent years, the stock has systematically done better than its reference sector, so it is quite physiological that it appears overvalued. However, it should also be noted that historically Brunello Cucinelli shares retain a higher relative strength than those of competitors.

In support of the stock, however, we remind you that, according to what was reported in specialized magazines, analysts’ expectations of turnover have significantly increased recently. Furthermore, the increase in revisions to earnings per share looks very positive in recent months. Analysts are now expecting higher profitability than in the past. Finally, the company’s EBITDA / turnover ratio is relatively important and generates high margins net of write-downs, depreciation and taxes.

However, analysts who have an average consensus to maintain with an average target price that expresses an undervaluation of around 17%.

Today’s closing for Brunello Cucinelli could be an excellent springboard: the indications of the graphic analysis

The title Brunello Cucinelli (MIL: BC) closed the session on 23 June with an increase of 1.35% compared to the previous closing at 41.94 euros.

Weekly time frame

brunelli cucinelli

Deepening

Stock markets still in decline and uncertainty skyrocketing but in Piazza Affari this factor could introduce something new

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”)

Leave a Comment