In the past few sessions, RPC Group, making Heinz Tomato Ketchup and Nivea suncream bottles, have suffered from a sharp fall and is now coming back on significant level support.

From a fundamental viewpoint, RPC Group is undervalued in terms of enterprise value. Based on the current price, its market capitalization, minus its net debt, represents 0.74 times its revenues. This valuation is only 11.3 and 9.46 times the two next years earnings.

Currently the stock is oversold and, in the mid-term, it is trading in a bearish trend. In the short term, this trend is reversed upon contact with the GBp 377 area. RPC Group should be able to confirm its increase in the next trading sessions. This support is a trading opportunity in order to anticipate a technical rebound towards GBp 406.1 and by extension towards GBp 447.

Thanks to the technical pattern and RPC Group’s strong fundamentals, active investors can take a long position above GBp 377. The downside potential is limited and the timing seems perfect to benefit from a technical rebound.
The goals will be fixed at GBp 406.1 in a first time and then at GBp 427.1.
However, a bearish trend would regain the upper hand if the security crosses GBp 377.