Trade view /
13 August 2015 at 7:09 GMT
French carmaker Peugeot has gained more than 60% this year, despite losing 10% during the last week on concerns about the Chinese economy.
Cost cutting drove H1 margins wider (EBITDA margin gained around 4% from H2’14) and while they may not widen further, tailwinds from EUR weakness and European household spending growth should drive earnings higher
Furthermore, the stock looks cheap relative to other European carmakers and the CAC index.
Peugeot price action (five-year):
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Source: Saxo Bank
Management and risk description
Key risks include further turmoil in China, demand slowdown in Europe.
Entry: at market.
Stop: trailing stop at 3.05 and a step of 0.31.
— Edited by Michael McKenna
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