Procter & Gamble Company : An opportunity to buy in
By Alexandre Nutte
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
US$63.51 | US$0 | US$62.15 | -100% |
Even if the group has reduced its EPS forecasts ($0.91-$0.97 cents below the $1.06 expected by Thomson Reuters) for its Q3, business expectations are well, as the income statement evolution chart (financials heading) remarked.
From a fundamental viewpoint, the company is trading at a high level as shown by the ratio “enterprise value/revenue” is 2.38x in 2012 and the price earning ratio is estimated at 15.9x. According to Thomson Reuters' consensus, the average target price is fixed at $71.1 which represents 12% potential.
The share rose to $66.95 resistance until the end of december bolstered by general upward trend on U.S stocks markets. Since this movement, the stock has dropped to $62.70 support which has been successfully tested several times, showing its pertinence.
In this context, the buyers could place an order close to the support and to aim at $66.95. This technical rebound configuration might be an opportunity for investors with a stop loss fixed at $62.