Schroders plc : An opportune reversal
By Arnaud Le Berre
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
GBX 2,108 | GBX 0 | GBX 1,995 | -100% |
The fundamentals support the stock with a gradual upward revision of earnings per share by analysts. Profitability of the company is very encouraging with a net margin of 24.5% for this year and a return on equity of 15.8%.
Schroders is in an uptrend in the medium and long term, but the last bearish movement returns close to a major support level, corresponding to a bullish trend line. This threshold, if preserved, will enable to enjoy the bullish movement.
In this configuration, investors could take a buy order on this level and get a good entry point to aim GBp 2364. A stop loss must be placed below the GBp 2076 medium term support.