Victrex plc : We anticipate a reversal
Entry price | Target | Stop-loss | Potential |
---|
GBX 1,893 |
GBX 0 |
GBX 1,844 |
-100% |
---|
Victrex shares were heavily penalized lately, and are coming back now to an opportune entry point.
The valuation of the company is still reasonable with a P/E ratio of 17.8x in 2016. The business is highly profitable, as the net margin of 31% for this year shows. Analysts who are covering the stock are regularly revising their EPS estimates, and target a 15% appreciation potential on average.
Graphically, the stock fell sharply in the late sessions, but the trend stays bullish in the medium and long term. The stock came back on its GBp 1864 support, which represents an opportune entry point, as it should allow a significant technical rebound.
Therefore, long position can be opened in order to target a return to the GBp 2027. A stop loss will be placed under the current support to protect the position.
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