PNV - Banter and General Comments, page-11927

It’s a quite reasonable overview. There’s nothing to disagree with, although I would say that the reason analysts have difficulty evaluating the business is because they don’t put the effort in (I’ll grant that this is because they aren’t supported by their firms to do so).

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Summary

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

Strengths

● Analysts expect a sharply increasing business volume for the group, with high growth rates in the coming years.

● The earnings growth currently anticipated by analysts for the coming years is particularly strong.

● Thanks to a sound financial situation, the firm has significant leeway for investment.

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

● For the past year, analysts covering the stock have been revising their EPS expectations upwards in a significant manner.

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

Weaknesses

● With an expected P/E ratio at 379.77 and 117.08 respectively for both the current and next fiscal years, the company operates with high earnings multiples.

● Based on current prices, the company has particularly high valuation levels.

● In relation to the value of its tangible assets, the company's valuation appears relatively high.

● The three month average target prices set by analysts do not offer high potential in comparison with the current prices.

● Prospects from analysts covering the stock are not consistent. Such dispersed sales estimates confirm the poor visibility into the group's activity.

● The price targets of analysts who cover the stock differ significantly. This implies difficulties in evaluating the company and its business.

● The group usually releases earnings worse than estimated.