Brammer plc : The bullish impetus is not depleted
By Etienne Veber
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
GBX 462.38 | GBX 0 | GBX 446 | -100% |
From a fundamental viewpoint, the group is in a good financial situation. Net margin and revenues are expected to rise sharply in the next fiscal years. A low valuation of the share (VE/Sales = 0.86) offers a growth potential on the stock.
Technically, the stock is moving in an upward trend for many weeks. This movement reflects a buyer enthusiasm confirmed also by the well orientation of the moving averages. The security is going toward GBp 482.3 and would give a strong buying signal if the crossing is confirmed in daily closing.
Therefore, investors could take a long position in Brammer, with a first target on the resistance of GBp 482.3. The crossing of this level will help the stock to aim GBp 500. A stop loss should be placed below GBp 447.5.