Phiadvisor Enter Long signal on Parrot (PARRO-FR)

We had an Enter Long signal on November 3td 2020, triggered by our system on PARRO-FR, Parrot the French drone company.

Parrot is a €124 mn market cap and the leading European group in the fast-growing drone industry. At the forefront of innovation, Parrot is the only company to be positioned across the entire supply chain, from equipment to software and services. Parrot, is the worldwide number two in the consumer drone market, designs products and software known for their performance and ease of use. The group also disposes of a set of solutions for professionals, covering equipment, software and services. The offer is focused on 4 verticals: video and photography, precision Farming, 3D mapping/ geomatics/inspection, and defence and security.

The company is still loss making and face fierce competition from chinese companies. However the US ban from chinese tech companies may benefit to Parrot. More structurally the revenue drop remains linked to the decrease in sales of consumer products and the gradual transformation of the product mix to focus on commercial drones, targeting stronger margins.

Short term catalyst: focus on commercial drones

This signal looks mainly company specific.