Business Square flies and moves above 20 thousand points and starts showing strength after the bearish impasse of 2 weeks ago. At this point in the next few days we will wait for confirmation for further accelerations. Where will we go? What dangers could loom on our horizon? At the moment these reflections will be postponed to the end of the week but now it is interesting to focus on possible gains to be made with interesting trading operations. In fact, it is time to focus on further rises for this uptrend and still undervalued by 30%.
We refer to Digital Value (MIL: DGV) which at this moment rises by + 6.57% and reaches 30.80. The company provides solutions and services to the telecommunications, utilities, energy, defense, transport and finance sectors in Italy.
What happens on the title today?
The short, medium and long-term trend is bullish and there are several assumptions that can continue the rising prices. Let’s go and list them.
Underestimation and fundamentals in place
We went to normalize the last few years of the financial statements and to make calculations using the discounted cash flow method and other calculation parameters and a fair value of 41.25 is highlighted. The consensus of analysts, on the other hand, estimates the achievement of a target price of 38.40. In both cases, therefore, the conclusion is that there is an underestimation of prices with respect to potential.
On the positive side, earnings are expected to grow by 15.67% per year and it is noted that revenues have grown by 24.8% in the last year.
Which investment strategy?
Aim for further rises for this stock in an uptrend and still undervalued by 30% and for those who have positions in progress the stop loss must be put at 26.69 and with an area target of 38/41 for (within the next 6/12 months.
For those wishing to open positions, they can do so on the market by always inserting the stop loss.
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