Sportingbet PLC : The bearish trend might get the upper hand
By Josselin Giraud
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
GBX 34.25 | GBX 0 | GBX 35 | +100% |
From a fundamental viewpoint, the group has not sufficient quality to hope for a continuation of its bullish trend. Indeed, Surperformance rating largely punishes Sportingbet because of an excessive valuation with an EV/Sales ratio higher than its peers. The deterioration of the financial situation and the increasing leverage for the two next fiscal year emphasize risks.
Technically, the security had a technical rebound but there is still a bearish trend in the mid-term. The bullish impetus should be stopped in the coming trading sessions. Thanks to it, the security has reached GBp 34.5 resistance. Yet, 100-day moving average is still bearish and the stock could return toward GBp 30.5.
Investors can anticipate a return toward support area in the coming trading sessions. They can take a short position in Sportingbet. The target price is fixed on the mid-term support at GBp 30.50. A stop loss order could be placed above the GBp 34.5 resistance area.