Rothschild & Co SCA (ROTH.PA) Strong Buy, Currently Undervalued

Rothschild & Co SCA (ROTH.PA) Strong Buy, Currently Undervalued

Rothschild & Co SCA (ROTH.PA) Strong Buy, Currently Undervalued

Rothschild & Co
Ticker: ROTH.PA
Price: EUR 19.60

Business Summary

Rothschild & Co SCA, formerly Paris Orleans SA is a France-based firm that focuses on two core businesses: banking and private equity activities. Banking activities includes investment banking and third-party asset management.

These businesses are owned by the holding company Rothschilds Continuation Holdings AG and are supported by a network of offices spanning five continents.

They are mainly carried out through two operating entities: Rothschild & Cie Banque in France andNM Rothschild & Sons in the United Kingdom.

The private equity activities focus on stable investments in companies. The investments are diversified in terms of both business sector and type of investment (equity holdings, mezzanine debt, etc.).

Shayne Heffernan Trade Idea

“Our current price target of Rothschild & Co will come in around EUR 24.60 which will give the stock a price increase of +25.51%.”

Price Performance

Relative Valuation

Technical Indicators

Overall, the bias in prices is: Upwards.

Note: this chart shows extraordinary price action to the upside.

By the way, prices are vulnerable to a correction towards 19.09.

The projected upper bound is: 21.26.

The projected lower bound is: 18.01.

The projected closing price is: 19.64.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 17 white candles and 32 black candles for a net of 15 black candles.

A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 41.9230. This is not an overbought or oversold reading. The last signal was a sell 7 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 54.07. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 8 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -60. This is not a topping or bottoming area. The last signal was a sell 7 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 3 period(s) ago.

Rex Takasugi – TD Profile

ROTHSCHILD & CO closed up 0.300 at 19.600. Volume was 30% above average (neutral) and Bollinger Bands were 3% narrower than normal.

Open     High      Low       Close       Volume
19.500   19.700    19.220    19.600      47,860
Technical Outlook
Short Term:        Neutral
Intermediate Term: Bullish
Long Term:         Bearish
Moving Averages: 10-period     50-period      200-period
Close:           19.99         18.19          22.60
Volatility:      62            56             46
Volume:          32,755        30,318         30,088

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

ROTHSCHILD & CO is currently 13.3% below its 200-period moving average and is in an upward trend. Volatility is high as compared to the average volatility over the last 10 periods.

Our volume indicators reflect moderate flows of volume into ROTH.PA (mildly bullish). Our trend forecasting oscillators are currently bullish on ROTH.PA and have had this outlook for the last 16 periods.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of the Paris Stock Market.

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Sources:
Rothschild & Co Company Website
Thomson Reuters Metastock and Eikon financial tools

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