New Zealand markets open in 4 hours 20 minutes
  • NZX 50

    11,967.72
    -66.45 (-0.55%)
     
  • NZD/USD

    0.6468
    -0.0001 (-0.01%)
     
  • ALL ORDS

    7,686.10
    -14.30 (-0.19%)
     
  • OIL

    78.71
    +0.81 (+1.04%)
     
  • GOLD

    1,943.70
    +4.50 (+0.23%)
     

At €135, Is It Time To Put adesso SE (ETR:ADN1) On Your Watch List?

While adesso SE (ETR:ADN1) might not be the most widely known stock at the moment, it received a lot of attention from a substantial price increase on the XTRA over the last few months. With many analysts covering the stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, could the stock still be trading at a relatively cheap price? Let’s take a look at adesso’s outlook and value based on the most recent financial data to see if the opportunity still exists.

View our latest analysis for adesso

What's The Opportunity In adesso?

According to my valuation model, adesso seems to be fairly priced at around 2.35% above my intrinsic value, which means if you buy adesso today, you’d be paying a relatively reasonable price for it. And if you believe that the stock is really worth €131.70, there’s only an insignificant downside when the price falls to its real value. Although, there may be an opportunity to buy in the future. This is because adesso’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company’s shares will likely fall by more than the rest of the market, providing a prime buying opportunity.

What does the future of adesso look like?

earnings-and-revenue-growth
earnings-and-revenue-growth

Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. adesso's earnings over the next few years are expected to increase by 86%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.

What This Means For You

Are you a shareholder? ADN1’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough confidence to invest in the company should the price drop below its fair value?

Are you a potential investor? If you’ve been keeping tabs on ADN1, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the positive outlook is encouraging for the company, which means it’s worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

If you want to dive deeper into adesso, you'd also look into what risks it is currently facing. At Simply Wall St, we found 2 warning signs for adesso and we think they deserve your attention.

If you are no longer interested in adesso, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here