Upward target : USD 16.1
By Etienne Veber
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
US$14.21 | US$0 | US$12.7 | -100% |
From a fundamental viewpoint, the security is cheap with a P/E Ratio of 4.18x for 2016. Besides, EV/Sales is low with a ratio at 0.73x for this year.
Technically, in daily data, even if moving averages are still in a downtrend, a positive reaction in the USD 13.8 area should stop this trend and allow a technical rebound towards USD 16.1. Moreover, technical indicators show a significant oversold condition which strengthens this bullish scenario.
So as to make the most of a potential technical rebound of Kraton Performance Polymers it seems opportune to open a long trade at current prices. A confirmation of this pattern would enable the security to reach the USD 16.1 resistance.
Investors should not insist under USD 13.8 and are better of placing a stop-loss order under this threshold.