Bet on a 30% undervalued share that is purchased by the same company

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Focusing on an undervalued stock like this could be an excellent investment for the future. Especially if the company buys treasury shares and there is a 40% underestimation.

We are talking about IREN a company that in the week of May 18-22 purchased 842,676 ordinary shares at the average unit price of € 2.1588. In this way, the Emilian utility holds 8,283,264 treasury shares, equal to 0.6367% of the share capital.

From the business point of view things are going very well as evidenced by the 2019 financial statements (click here to read) and the company is very committed to strengthening its financial resources to improve the service offered. Proof of this is the 80 million euro financing that will be used to develop sustainable projects relating to the water network with the aim of improving the quality of the service. In addition, they will also be used for the construction of water treatment plants in the Liguria Region and for the reduction of network losses in the provinces of Genoa and Parma.

An evolving company, therefore, that focuses on itself, but not only. Analysts also have an average BUY consensus, buy now, with an average target price that expresses an underestimation of around 30%. It should be noted that even in the most pessimistic scenario, the security is underestimated by 15%.

We also remind you that the group has decided to distribute a coupon for the end of June whose yield at current prices has a yield higher than 4%.

Bet on an undervalued stock? The level where to buy for graphic and forecasting analysis

Iren (MIL: IRE) closed the session on May 26 at € 2.262, up 1.43% on the previous session.

On the stock, weekly time frame, a bullish projection is underway which is confirmed by the BottomHunter signal. The prices, therefore, are directed towards the 1st price target in the € 2.7849 area. A weekly close above this level would open the door to a continuation of the rise up to the 2nd price target in the € 3.8768 area. The maximum extension of the rise, however, is in the € 4,9642 area. It should be noted that if this level is reached, Iren would see its prices gain around 120%.

At present, a weekly close below € 2.1154 would reverse the current trend downwards.

iren

Iren: bullish projection in progress on the weekly time frame. The blue line represents the running bisector levels; the red line the levels of The New Law of Vibration.



Source link
https://www.proiezionidiborsa.it/puntare-su-una-azione-sottovalutata-del-30-e-che-viene-acquistata-dalla-stessa-societa/

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