Renta 4 |In the case of Acerinox, there is a lot of data which grabs the attention, both at a technical and valuation level. During the last 15 years, the price has been forming a defined lateral range, with resistance between 12,70 and 13,75 euros (historic highs).
This kind of very long consolidation (in the price) precedes important long-term trends. So it is possible to consider the potential for an upward trend starting during the next few years, given that the valuations are very positive.
Consensus has kept its objectives 26% higher, despite the fact the price has been correcting since May, presenting lower valuations, 12% above current levels. The compression in the slow indicators confirm a significant long-term trend is in the making. There is no doubt that an investor would have to consider buying the stock, particularly with comfortable prices above 12,70-13,75 euros.
Recommendation: Buy Medium/Long-term