(NVG) Novavis - Ratings and Ratios

3-Month Forecast:

Technical indicators suggest a bearish outlook. The stock is trading below its 200-day SMA (1.78) and slightly below its 50-day SMA (1.32), with a 20-day SMA of 1.38. The ATR of 0.05 indicates low volatility, suggesting a narrow trading range. Support levels at 1.30 and resistance at 1.40 are critical to monitor.

Fundamental analysis highlights a high P/B ratio of 9.63 and P/S of 10.12, signaling a premium valuation relative to book value and sales. The forward P/E of 2.41 suggests market expectations for future profitability, though the current P/E of 0.00 and negative RoE (-17.51%) indicate ongoing profitability challenges. The market cap of 49.55M PLN reflects moderate investor confidence despite these hurdles.

Forecast Outlook:

Month 1: The stock is likely to stabilize around its current price of 1.37, with potential sideways movement due to low ATR. A breakout above 1.40 could signal bullish momentum, while a breach below 1.30 may trigger further decline.

Month 2: If the company announces positive developments (e.g., new projects or improved margins), the stock could test resistance at 1.50. Conversely, lack of progress may see it retest support at 1.30.

Month 3: Expect increased volatility as investors react to earnings reports and industry trends. A potential upside target of 1.60 exists if fundamentals improve, while downside risk to 1.20 remains if profitability concerns persist.