Last Update 04 Jul 25
Target Price: 58 EUR - Eurozone Entry as a Game Changer
In February 2025, we successfully called Shelly Group's move to 47-50 EUR levels, which has now been achieved. With this target reached, we're updating our analysis with a new price objective of 58 EUR.
We expect a healthy correction to around 43 EUR by the end of summer 2025, as sentiment cools and profit-taking sets in. This pullback will create an excellent entry opportunity before the real rally begins. From these levels, we project approximately 35% upside to our target.
Bulgaria's entry into the Eurozone on January 1st, 2026 will act as a powerful catalyst, eliminating currency risk and dramatically simplifying access for European institutional investors who have previously avoided Bulgarian equities due to the administrative burden of dealing with BGN-denominated securities.
Croatia's CROBEX index gained 26.8% in the year following its Eurozone entry in January 2023, and we expect Bulgaria's market to potentially outperform this with gains of 30-35%, driven by its significantly lower valuations and the pent-up demand from international investors. The combination of improving fundamentals in H2 2025 and the approaching Eurozone milestone should drive strong momentum into year-end and beyond.
Technical Analysis of Shelly Group (SLYG)
Key Levels:
- Current Level: 36.9-37.3 EUR
- Historical Resistance Level: ~40 EUR
- Previous Low: 32.2 EUR
Technical Picture:
- We observe a classic upward trend formation after a low.
- The distance from the low (32.2 EUR) to the resistance (40 EUR) is approximately 7.8 EUR.
- Following the technical breakout rule, we can expect a similar movement above the resistance.
- This gives a first technical target around 47.8-48 EUR (40 + 7.8).
Time Factor:
- The movement from the low to the current levels has been relatively quick.
- Upon breaking 40 EUR, there will likely be a short-term consolidation.
- Reaching levels of 47-50 EUR could take a few months.
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Disclaimer
The user BigBear has a position in BUL:SLYG. Simply Wall St has no position in any of the companies mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The author of this narrative is not affiliated with, nor authorised by Simply Wall St as a sub-authorised representative. This narrative is general in nature and explores scenarios and estimates created by the author. The narrative does not reflect the opinions of Simply Wall St, and the views expressed are the opinion of the author alone, acting on their own behalf. These scenarios are not indicative of the company's future performance and are exploratory in the ideas they cover. The fair value estimates are estimations only, and does not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that the author's analysis may not factor in the latest price-sensitive company announcements or qualitative material.
