Life Technologies Corp : Bearish acceleration
By Alexandre Nutte
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
$43.48 | $42.9 | $43.5 | +1.33% |
The company has a high level of valuation as shown by the PER, estimated at 16.1x and the “enterprise value/revenue” ratio at 2.48x for the current year. Besides, according to the analysts polled by Thomson Reuters, the earnings per share has been downgraded.
After several trading sessions, the stock has breached the USD 45.7 technical line. The pressure of the 20-days moving average has entailed the decline of the share. The security could plummet to USD 39.5 and fill a bullish gap.
In this context, investors could take a short position below the USD 43 in closing price to target the USD 39.5. However, a stop loss should be fixed at USD 43.5.