International Personal Finance plc : Profit from the technical rebound
By Anas Boumedian
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
GBX 434.2 | GBX 0 | GBX 424.3 | -100% |
The security is cheap with a P/E ratio of 10.4x in 2015. Moreover, Thomson Reuters estimates show that it has an important growth potential. EPS are expected to increase by 41% this year. Indeed, analysts covering the stock target on average a 25% appreciation potential.
Graphically, the stock fell slightly upon contact with the upward trendline, and came back on the GBP 432.2 support. This threshold, tested previously, is likely to allow a technical rebound towards the GBp 472.5 pivot point.
Therefore, long positions can be opened on the stock to target GBp 472.5. A stop loss will be placed under the current support.