PZ Cussons reaches a strategic entry point and has a considerable potential.

By 2016, it seems that PZ Cussons's profitability could significantly increase. Indeed, net margin should be at 9.34% in 2016 against 8.86% for the current year. Sales are also expected to increase. To date, the P/E ratio for 2015 is estimated at 19.6 and at 17.5 for 2016.

Regarding a technical viewpoint, the stock is supported by an upward canal and prices are currently meeting the upward trendline. A positive reaction could take place on this support has it did several times before. Moreover, in weekly data the short term moving average has recently crossed the 50-period moving average which should legitimate a coming rise.

As a result, active investors can take immediately a long position in PZ Cussons thanks to the close proximity of the trendline. The first target price is the GBp 363.7 pivot point and in case of breakout of this level, the second target price would be GBp 371.9. If there is a breakdown of the support, investors should close their positions.