Marks & Spencer Group plc : A rally could take place
Entry price | Target | Stop-loss | Potential |
---|
GBX 464.1 |
GBX 0 |
GBX 448 |
-100% |
---|
Marks and Spencer shows relatively strong fundamentals and is coming back to attractive prices.
From a fundamental viewpoint, Marks and Spencer seems undervalued in terms of enterprise value. Based on the current price, its market capitalization, plus its net debt, represents 0.92 times its revenues.
This valuation is only 13.75 and 12.15 times the two next years earnings.
Technically, the security is in a negative configuration in the short term as the bearish trend of 20-day moving average, currently at GBp 494.7, shows. Nevertheless, the stock seems in an oversold situation, near to its GBp 455.7 support in daily data. This level might stop the bearish trend in the short term.
The trading strategy can benefit from the proximity of the strong support currently tested in order to buy Marks and Spencer with a good timing. The potential gain is around 7%. Investors might place a stop loss order at GBp 448 in order to avoid important losses.
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