The share is reaching a technical resistance and could begin a bearish trend.

From a fundamental viewpoint, firstly, we note the high valuation of the company : P/E ratio for the current year is at 34.19x and expected at 36.26x for next year showing the decrease in the profitability in the coming years. Moreover, with a valuation ratio of 6.34x its 2014 estimated revenues, the group appears overvalued compared to its peers. Regarding the financial situation, leverage ratio should more than double by 2015.

Concerning technical analysis, the proximity of the GBp 909.5 medium-term resistance limits the upside potential on the stock. The uptrend in the short term could be stopped by this level and prices could decrease sharply in the coming sessions. Technical indicators also show an overbought situation that reinforces this bearish scenario. Thus, there is a higher downside potential than an upside one.

The technical configuration and fundamentals lead us to predict a consolidation phase, at least in the short term. Therefore, in order to take advantage of this technical correction, a short position may be opened in the current area to target GBp 806.5. In case of further acceleration, the stop loss will be triggered above the GBp 909.5.