Carillion plc : Perfect timing to aim a technical rebound
By Maxime Nonglaton
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
GBX 236.4 | GBX 0 | GBX 232 | -100% |
From a fundamental viewpoint, the company seems undervalued relatively to its peers with a EV/Sales of 0.23. However, analysts have revised slightly downward their earnings forecasts. With an EPS estimated at GBP 38.08 for this year and GBP 40.5 for the next year, Carillion is currently paid 6.21 and 5.84 times the results.
Technically, the security is in a negative configuration in the short term as the bearish trend of 20-day moving average, currently at GBp 253.4, shows. Nevertheless, the stock seems in an oversold situation, near to its GBp 235.5 support in daily data. This level might stop the bearish trend in the short term.
Considering technical and fundamental elements, it seems to be an appropriate timing to take immediately a long position in Carillion in order to benefit from the GBp 235.5 support area. A first target price will be the GBp 253.5 resistance, ie a potential of 7.2%. A stop loss order will be placed under the mid-term support currently tested. Only a crossing of GBp 253.5 would validate a bullish trend in order to aim a higher target price.