Petrofac Limited : Back on an attractive price
By Anas Boumedian
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
GBX 711 | GBX 0 | GBX 659 | -100% |
The company appears undervalued and very attractive with a P/E ratio of 6.57x for 2014. Furthermore, analysts covering the stock target on average a 51% appreciation potential on current trading prices.
Graphically, after a strong downward movement, the stock seems to have found a support on the GBp 670 area. Moving averages are flat and technical indicators illustrate the oversold situation. The GBp 670 area could stimulate a positive reaction for the coming trading sessions and allow a technical rebound towards the GBp 899.5 mid-term resistance.
Therefore, the timing seems favorable to buy the security on an attractive price. The target price will be set at the GBp 774 pivot point. Investors might place a stop loss at GBp 659.9 in order to avoid important losses.