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At €59.25, Is It Time To Put Covivio (EPA:COV) On Your Watch List?

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Simply Wall St
·3-min read
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Covivio (EPA:COV), which is in the reits business, and is based in France, received a lot of attention from a substantial price increase on the ENXTPA over the last few months. With many analysts covering the mid-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. But what if there is still an opportunity to buy? Let’s examine Covivio’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.

View our latest analysis for Covivio

What is Covivio worth?

Good news, investors! Covivio is still a bargain right now. According to my valuation, the intrinsic value for the stock is €75.58, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. However, given that Covivio’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.

Can we expect growth from Covivio?

ENXTPA:COV Past and Future Earnings April 20th 2020
ENXTPA:COV Past and Future Earnings April 20th 2020

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. However, with a relatively muted profit growth of 7.0% expected over the next couple of years, growth doesn’t seem like a key driver for a buy decision for Covivio, at least in the short term.

What this means for you:

Are you a shareholder? Even though growth is relatively muted, since COV is currently undervalued, it may be a great time to increase your holdings in the stock. However, there are also other factors such as capital structure to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on COV for a while, now might be the time to enter the stock. Its future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy COV. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed buy.

Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Covivio. You can find everything you need to know about Covivio in the latest infographic research report. If you are no longer interested in Covivio, you can use our free platform to see my list of over 50 other stocks with a high growth potential.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.