First Niagara Financial Group Inc. : Near to a turning point
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07/09/2012 | 09:54am
Opinion : Bearish under 7.4 USD
Target price : 6.8 USD
Stop loss: 7.7 USD
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NASDAQ
Banks |
No more technical support for the stock after the breakdown of the USD 7.51.
After several trading sessions, the stock is about to break the USD 7.51 support. The pressure of the 20-day moving average has entailed the decline of the share. The security could plummet to USD 7.1.
The company has a high level of valuation as shown by the “enterprise value/revenue” ratio at 2.01x for the current year. Besides, according to the analysts polled by Thomson Reuters, the earnings per share have been recently downgraded.
A short position may be initiated on the stock once the USD 7.5 support is broken. The target price is set at USD 6.8, a potential of 10%. A stop loss will be placed above the USD 7.7 support. The breakdown of this threshold would invalidate the bearish strategy.
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| Profitability |
2013e |
2014e |
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Operating Margin (EBIT / Sales)
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35,3% |
36,8% |
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operating laverage (Delta EBIT / Delta Sales)
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- |
2,74x |
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Net Margin (Net Profit / Revenue)
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18,4% |
19,5% |
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ROA (Net Profit / Asset)
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0,75% |
0,78% |
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ROE (Net Profit / Equities)
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6,30% |
6,56% |
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Rate of Dividend
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43,2% |
40,2% |
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