SABMiller plc : Support breakdown to reinforce the position
Entry price | Target | Stop-loss | Potential |
---|
GBX 2,688 |
GBX 2,424 |
GBX 2,780 |
+9.82% |
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SABMiller is a multinational brewing and beverage company headquartered in London, United Kingdom. It is the world's second-largest brewer measured by revenues and is also a major bottler of Coca-Cola. Its brands include Fosters, Grolsch, Miller Brewing Company, Peroni Nastro Azzurro and Pilsner Urquell.
For this company, downward sales are anticipated for this current year (drop of 5%) and a diluted leverage since 2013 for a 2018 horizon. In addition, the stock seems overvalued with a P/E ratio of 19.5. In resume overvalued and not really profitable give an idea of its weak fundamentals. Furthermore, EPS are constantly revised downward for the current year same as revenues, but this one with several variations.
SABMiller is expected to continue dropping as evinced on early trades. Active investors could take a short position on this stock at its current trade range GBp 2685-2690; the position will be reinforced if the share price breaks the GBp 2620 support down. The target price is GBp 2424 and the stop loss is fixed at GBp 2780.
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