Our pool of experts has identified Ratti as a very interesting stock that could give excellent satisfactions in the years to come. It must be said that the title is not covered by analysts and, therefore, we will only rely on graphical and fundamental analysis.
Let’s start by saying that Ratti is an excellent performance company. In fact, every year a dividend is distributed which, as seen in the following table, was, on average, higher than 4.5%. An excellent result that could also satisfy investors looking for good dividends.
From the point of view of the company’s assessment, the indications are very interesting. If we compare the fair value, calculated with the discounted cash flow method, Ratti is underestimated by approximately 50%. A similar result is obtained if the profit multiples method is used.
Even the stock market performance has always been very good with the title that has always beaten both the reference sector and the Italian market. Only in the past 30 days has the stock been losing relative strength. Therefore, the conditions could be created for an excellent purchase opportunity.
Excellent dividend and 50% undervaluation: investing in this security could be a bargain, but on what levels?
Ratti (MIL: RAT closed the session on 14 July with a fall of 0.49% compared to the previous session at € 4.04.
Daily time frame
The projection in progress on the daily time frame is bearish and the last three sessions have not only confirmed, but strengthened, this scenario. The prices, in fact, broke the strong support identified by the 1st price target in the € 4,164 area and are now headed towards. the intermediate target in the area € 3,764. The main target, on the other hand, is located in the € 3.119 area (2nd price target). The maximum extension of the ongoing discount is in the € 2,079 area.
An excellent entry point, therefore, could be in the first approximation area € 3,764 as long as the stop applies in the case of daily closings lower than the level itself. Even more reliable would be a purchase in the € 3,119 area.
The bulls could only regain strength in the case of daily closings above € 4.164.
Weekly time frame
Even on the weekly the situation is very compromised. Last week, in fact, caused the breakdown of the very important support in the € 4.159 area by opening the doors to a drop to the second price target in the € 3.117 area. This level could be a good opportunity to buy. The maximum extension of the ongoing discount is in the € 2,062 area.
The bulls would regain strength in the event of weekly closings above € 4.159.
Where is the Future Ftse Mib headed in the medium / long term?