(ALLOG) Logic Instrume - Ratings and Ratios

Logic Instrument S.A. is a French company specializing in the manufacture and distribution of rugged mobile computers for professional applications, including industries that require durable and reliable devices. Their product portfolio encompasses rugged smartphones, Windows and Android tablets, rugged laptops and servers, as well as militarized tablets and laptops designed to withstand harsh environments. With a history dating back to 1987, the company has established itself as a significant player in the niche market of rugged mobile computing solutions. Headquartered in Igny, France, Logic Instrument S.A. operates with a global perspective, catering to diverse professional needs. For more information, you can visit their official website at https://logic-instrument.com.

The companys stock, traded under the ticker symbol ALLOG, is classified as a common stock within the Technology Hardware, Storage & Peripherals sub-industry according to the GICS classification. As a French company, its performance is influenced by both local and global market trends, as well as the demand for rugged and reliable computing solutions in various sectors, including defense, field services, and logistics.

Analyzing the technical data, the stocks last price was recorded at 1.60 EUR, slightly below its 20-day Simple Moving Average (SMA) of 1.61 EUR, indicating a potential bearish trend in the short term. However, the 50-day SMA at 1.57 EUR and the 200-day SMA at 1.12 EUR suggest an overall upward trend, as the stock price is above both these averages. The Average True Range (ATR) stands at 0.09, translating to a volatility of 5.83%, which is relatively moderate. The stock has seen a 52-week high of 1.91 EUR and a low of 0.86 EUR, indicating a significant range and potential for volatility. Based on the technical indicators, a potential buy signal could emerge if the stock price surpasses the 1.61 EUR SMA20 level with increasing volume, targeting a resistance level around 1.91 EUR.

From a fundamental analysis perspective, Logic Instrument S.A. has a market capitalization of 14.80M EUR, indicating a relatively small-cap stock. The Price-to-Earnings (P/E) ratio is 11.64, suggesting that the stock might be undervalued compared to its earnings. The Return on Equity (RoE) stands at 35.28%, indicating a strong profitability relative to shareholder equity. The absence of a forward P/E ratio makes it challenging to assess future earnings expectations directly. However, combining the technical and fundamental data, a forecast could be made that if the company continues to demonstrate strong profitability and the stock price breaks through the resistance level of 1.91 EUR, it could potentially target higher levels, driven by both its fundamental strength and improving technical indicators.

Forecasting the stocks future performance involves considering both the technical and fundamental aspects. If Logic Instrument S.A. maintains its RoE and continues to grow its earnings, and if the stock price can break through the 1.91 EUR level, we could see a potential rise towards 2.20 EUR in the short to medium term, assuming the overall market conditions remain favorable and the demand for rugged mobile computers continues to grow. Conversely, failure to break the 1.91 EUR resistance level, coupled with a decline in earnings or RoE, could lead to a retracement towards the 1.12 EUR level. Thus, a strategic entry point could be considered above 1.61 EUR with a stop-loss around 1.40 EUR, based on the current ATR.