FirstGroup plc : An opportune configuration
By Anas Boumedian
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
GBX 95.7 | GBX 0 | GBX 92.4 | -100% |
The company displays good fundamentals as underlined by Surperformance rating. It has a low valuation, with an EV/Sales ratio of 0.41x in 2015. Moreover, analysts covering the stock target on average a 39% appreciation potential.
Graphically, the stock was heavily penalized lately, and is coming back now on the GBp 94.3 support as well as the downward trendline. This situation gives credit to a potential technical rebound. Thus, the stock could find new energy and would rise towards the next GBp 100.5 resistance.
Therefore, the timing seems opportune to take a long position in FirstGroup. The first goal is a return in the GBp 100.5 resistance area. A stop loss order can be placed under the support currently tested.