Syntel, Inc. : A rebound is expected near USD 88.7
By Rosanna Santana
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
US$91.85 | US$96.8 | US$84.8 | +5.39% |
The company shows strong fundamentals. Sales are expected to grow by 13% for a net income of 225 in 2014. Analysts consensus on Syntel remains buyer. Indeed, its revisions on EPS progressed by 15% in the last 12 months for the 2014 fiscal year. Moreover, “Superformance” trading rating is highly encouraging for long position taking since the business is highly predictable and profitable.
Technically, the stock is in the middle of a downtrend. This negative movement toward the USD 88.7 level should continue through ensuing sessions, allowing investors to profit from an interesting entry point. For now, daily moving averages are helping the stock path in its way to lower prices, but once the support tested weekly moving averages would assist for a upturn. Hence, the target price will be fixed at USD 96 for a stop loss order placed below the entry point at USD 84.8.