Turbo Certificate

Erg shares, sell after Morgan Stanley's downgrade?

Erg shares, to sell after Morgan Stanley's downgrade to "underweight"? The Italian utility is under the spotlight of analysts along with other shares in the sector at European level.
In a context in which the bond market is still showing rising yields, Erg and the other securities in the sector are suffering.
Morgan Stanley believes the stock is now fully valued and has no room for further growth.
The target price set by the bank is 27.3 euros (from 26.8 euros), slightly above the current valuation (26.48 euros).
The analysts' negative opinion triggered a wave of sales on the stock, which yesterday recorded the worst performance in the Ftse Mib basket.
The perspective offered by Intesa Sanpaolo is different, as it recently reiterated its positive view on Erg, confirming its "buy" rating.
Despite the cut in the target price from 33.5 to 32.5 euros, the Italian bank's analysts still see a potential appreciation of 22% compared to current levels.
Intesa Sanpaolo underlines Erg's financial solidity and limited exposure to market fluctuations in production.
This positive outlook is supported by solid fundamentals, good earnings visibility and a balanced risk/return profile.
Erg: operational strategies with UniCredit Turbo Certificates Erg reversed course after the test at around 27 euros of the 38.2% retracement (Fibonacci) calculated on the decline from the highs of August 2022.
The stock is trying to climb back up from lows reached at the beginning of October at 21 but ran into a tenacious obstacle.
The exceeding of 27 euros and the breaking of 27.90 euros would send signals of strength in the graph to project prices in the 28.70-29 area.
Drops below 25.76 euros, yesterday's low, would pave the way for sellers towards supports at 25.20 and 24 euros.
To trade long on Erg it might make sense to use a Unicredit Turbo Open End certificate with ISIN DE000HC9YH75.
The certificate has Erg as its underlying and has a barrier currently 15.91% away.
To operate Short, however, it may be appropriate to use Unicredit's Turbo Open End Short certificate with ISIN DE000HC22WD8, having a barrier 15.73% away and Erg as the underlying.
We remind you that this barrier corresponds to a real stop loss, intrinsic to the product, upon touching which the position is automatically closed.
Furthermore, Unicredit's Turbo Open End certificates eliminate the problem of the investment time limit without maintaining the presence of the annoying compounding effect.
However, they are complex financial instruments: for trading operations it is important to set a stop loss based on your needs and the right money management rules.
Discover all UniCredit Turbo certificates

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