After a very good first half of 2021 in terms of stock market performance, Tod’s shares started a slow but inexorable decline. Now that the decisive days are approaching, what will Tod’s stock do when it comes to major support levels?
If you look at the graph, we immediately notice that the prices are at the levels of the beginning of March, in the 30.92 euro area, from where a short-lived rebound began. At present, therefore, it will be crucial to understand what the title will do near this level.
A weekly close of less than € 30.92 would open the door to a continuation of the decline at least up to the € 23.51 area (I price target). Then, the other objectives are indicated on the graph.
The bulls could regain control of the current trend only in the case of weekly closes above 35.49 euros. In this case, Tod’s shares could return to the 50 euro area.
We conclude by noting that Tod’s performance has historically been lower than that of the reference sector.
The evaluation of the Tod’s stock
If you look at the stock from the perspective of market multiples, it turns out that, whatever the metric used, Tod’s shares are overvalued. For example, with an expected price / earnings ratio of 54.81 and 27.59 for the current year and for the next year respectively, the company operates with very high earnings multiples. The debt / operating margin ratio is also operating. gross (EBITDA) appears to be relatively high.
If, on the other hand, we look to the future, things change drastically. Analysts are clearly optimistic about the prospects for turnover and have recently revised upwards the estimates on the evolution of the business. Consequently, in the last twelve months, consensus analysts have largely revised their opinion on the company in a positive way.
According to what is reported in the specialized magazines, the analysts’ opinion is very contradictory. On the one hand, in fact, the average consensus of analysts is to lighten. On the other hand, the target price which expresses an undervaluation of around 31%.
What will Tod’s stock do when it comes to major support levels? The indications of the graphic analysis
The stock title Tod’s (MIL: TOD) closed the session on 10 May at 31.74 euros, down by 1.86% compared to the previous session.
Weekly time frame
What will happen in the equity markets tomorrow? 11 and 13 May setups will expire