Signature Aviation : We anticipate a new reversal
Entry price | Target | Stop-loss | Potential |
---|
GBX 305.9 |
GBX 0 |
GBX 297.8 |
-100% |
---|
BBA Aviation could regain its upward trend after having run out of steam.
The group enjoys upward revisions in earnings per share and growth prospects. Indeed, the Thomson Reuters consensus expect sales to grow for 2013 and 2014. The P/E ratio doesn't show an over-valuation and the analysts consensus is still positive.
Graphically, buyer flows are reduced. If the trend is now bearish in the short term, profit taking is part of a rebound on the GBp 305.1 and therefore does not affect the upward trend in the medium and long term. The strong support at GBp 305.1 should allow investors to come back on the stock.
In this configuration, a rebound seems unavoidable in the GBp 305.1 area. Investors could take a buy order on this level and get a good entry point with a stop below the medium term support at GBp 305.1.
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