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Trading Idea - #STABILUS

Long
XETR:STM   STABILUS SE
My trading idea for STABILUS SE - long/buy

Target: 60.00 EUR
Stop: 37.00 EUR

Company profile on STABILUS SE: Stabilus S.A. is a manufacturer of gas springs and hydraulic dampers based in Luxembourg. The company was founded in 1934 and employs over 4,000 people at nine production sites worldwide. Stabilus' best-known product is the Lift-O-Mat. This is used for the most part in tailgates and engine hoods of passenger cars, but also in medical and rehabilitation technology and in maritime applications. Gas springs or dampers from Stabilus are also used in swivel chairs and other furniture.

JPMorgan as a driver of Stabilus. It is not unusual for major investment houses to influence the share price of individual companies with their forecasts and analyses. On January 05, 2022, Stabilus was downgraded by JPMorgen. The earnings expectations were significantly below expectations. Consequently, the share price slid by almost 40%. Almost half a year later, the tide turns. Stabilus exceeds profit expectations and JPMorgan analysts rate the share price higher with a target of EUR 62.00.

After strong sales growth in Q2 - 2022, the company has set the corporate target far high, possibly without the calculation of rising prices for raw materials, which can only be partially passed on to customers. Nevertheless, the company is well positioned as strong automotive business in Asia powers Stabilus.

Sales Q2- 2022: With 15% more than last year, the Group achieved record quarterly sales of approximately 281 million euros. In the company's history, this is the highest revenue so far.

Looking at the chart, the share price has successfully bounced off the EUR 40 .00 support line.

Overall, there should be more bullishness for Stabilus.

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