Cosmo Pharmaceuticals NV. (SWX:COPN), a pharmaceuticals company based in Ireland, received a lot of attention from a substantial price movement on the SWX in the over the last few months, increasing to CHF147.6 at one point, and dropping to the lows of CHF125.5. This high level of volatility gives investors the opportunity to enter into the stock, and potentially buy at an artificially low price. A question to answer is whether Cosmo Pharmaceuticals’s current trading price of CHF133 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Cosmo Pharmaceuticals’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. View our latest analysis for Cosmo Pharmaceuticals
What’s the opportunity in Cosmo Pharmaceuticals?Great news for investors – Cosmo Pharmaceuticals is still trading at a fairly cheap price. My valuation model shows that the intrinsic value for the stock is CHF329.74, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. What’s more interesting is that, Cosmo Pharmaceuticals’s share price is quite stable, which could mean two things: firstly, it may take the share price a while to move to its intrinsic value, and secondly, there may be less chances to buy low in the future once it reaches that value. This is because the stock is less volatile than the wider market given its low beta.
What does the future of Cosmo Pharmaceuticals look like?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. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. With profit expected to grow by 69.77% over the next couple of years, the future seems bright for Cosmo Pharmaceuticals. It looks like higher cash flows is on the cards for the stock, which should feed into a higher share valuation.
What this means for you:
Are you a shareholder? Since COPN is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. With an optimistic outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. 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 COPN for a while, now might be the time to make a leap. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy COPN. 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 Cosmo Pharmaceuticals. You can find everything you need to know about Cosmo Pharmaceuticals in the latest infographic research report. If you are no longer interested in Cosmo Pharmaceuticals, you can use our free platform to see my list of over 50 other stocks with a high growth potential.