To The Moon

Shares in BMW AG $Bayerische Motoren Werke AG(BMWYY)$ are approaching an important resistance level. The stock's technical chart suggests that this pivot level will be broken. Investors have an opportunity to buy the stock and target the € 115.

BMW AG : BMW AG : The stock is approaching a major resistance level

Entry price : 104€ | Target : 115€ | Stop-loss : 97€ | Potential : 10.58%

Summary

• The company has strong fundamentals. More than 70% of companies have a lower mix of growth, profitability, debt and visibility.

• Overall, and from a short-term perspective, the company presents an interesting fundamental situation.

• The company has a good ESG score relative to its sector, according to Refinitiv.

  
  

Strengths

• The company is in a robust financial situation considering its net cash and margin position.

• Its low valuation, with P/E ratio at 6.82 and 6.64 for the ongoing fiscal year and 2024 respectively, makes the stock pretty attractive with regard to earnings multiples.

• The stock, which is currently worth 2023 to 0.3 times its sales, is clearly overvalued in comparison with peers.

• The company's share price in relation to its net book value makes it look relatively cheap.

• The company has a low valuation given the cash flows generated by its activity.

• The company is one of the best yield companies with high dividend expectations.

• Over the past year, analysts have regularly revised upwards their sales forecast for the company.

• Growth remains a strong point in this company. In their sales forecast, analysts sound optimistic with regard to sales prospects.

• For the last few months, EPS revisions have remained quite promising. Analysts now anticipate higher profitability levels than before.

• The average price target of analysts who are interested in the stock has been strongly revised upwards over the last four months.

• Historically, the company has been releasing figures that are above expectations.

Weaknesses

• With relatively low growth outlooks, the group is not among those with the highest revenue growth potential.

• The company's currently anticipated earnings per share (EPS) growth for the next few years is a notable weakness.

• The overall consensus opinion of analysts has deteriorated sharply over the past four months.

• Over the past twelve months, analysts' opinions have been revised negatively.

• The price targets of various analysts who make up the consensus differ significantly. This reflects different assessments and/or a difficulty in valuing the company.