JDS Uniphase Corporation : Bullish reaction is expected
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04/17/2012 | 10:57am
Opinion : Bullish above 13.3 USD
Target price : 14.9 USD
Stop loss: 12.1 USD
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NASDAQ
Communications Equipment |
JDS uniphase corporation is a provider of communications test and measurement solutionsand optical products for telecommunications service providers, wireless operators and network-equipment manufacturers. The company provides for several activities as biomedical and environmental instrumentation or aerospace and defense.
For the 2011 fiscal year, the company has well-performed with a turnover up to $1.8 billion against $1.37 billion, a previous year. The company is become profitable, the net income was $71.6 million whereas in 2010, the group had published a loss of $61.8 million. According to the Thomson Reuters’consensus, the average target price is fixed at $17.2 which represents a potential of 30% compared to the current price.
Graphically, we can see a specific technical configuration as shown by a double top on the USD 14.9 resistance. Afterward, a bearish consensus has emerged and the stock is led to stabilization. Besides, the proximity of the support has always pushed the share to the resistance.
In this context, market participants could take advantage of the support of the 100-days moving average to buy the stock at the current price and target the USD 14.9 resistance. However, a stop-loss will be positioned at USD 12.1.
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Alexandre Nutte
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