In the recent months, the earnings estimates for the next year have been regularly revised upward by analysts.

From a fundamental point of view, the company is undervalued compared to its peers with a P/E ratio of 6.1 and 6.6 for the current and the next year.

Technically, the security is going through a trading range GBp 163.4/200 for more than 6 months. In this area, moving average are showing a neutral trend. Near the lower level of this consolidation phase, investors could buy the stock in order to benefit from the trading range.

Considering technical and fundamental elements, it seems to be an appropriate timing to immediately take a long position in Ferrexpo in order to benefit from the GBp 163.4 support area. A first target price will be the GBp 181.6 resistance, ie a potential of 5.6%. A stop loss order will be placed under the mid-term support currently tested. Only a crossing of GBp 181.6 would validate a bullish trend in order to aim a higher target price.