The group shows strong fundamentals. Its Superformance ratings highlight its qualities in term of revenue growth, valuation and profitability. Looking down at numbers, sales are expected to rise 42% in 2016, reaching GBP 3.2 billion. Analysts continue to revise upward their estimation for both revenue and EPS. In fact, 2015 EPS has been increased by 40% over the last 12 months. Moreover, over the same period, the net margin should improve from 11.8% to 15%. Furthermore, with a P/E ratio of 7.8x, 2015 estimates, the company seems undervalued compared to its peers. Finally, the stock is supported by a strong buy consensus and offers an interesting potential when considering the average target price.

Technically, the stock price fell sharply following the consolidation movement on the construction sector. The equity has rebounded when touching the GBp 101 support line. Considering the group’s strong fundamentals and the good perspectives on the business activities, this reversal movement could accelerate launching the stock back on its bullish trend.

Therefore, a long position could be taken at the current price targeting acceleration towards GBp 120. Nonetheless, a stop loss will be placed under the entry point to protect from a renewed downtrend.