The GBp 1667 support, currently tested, should allow Ultra Electronics Holdings to rally again.

The company displays a reasonable valuation and a significant profitability. Reuters estimates show an important growth potential for the company. Analysts covering the stock target on average a 9% appreciation potential.

Technically, in daily data, even if moving averages are still in a downtrend, a positive reaction in the GBp 1667 area should stop this trend and allow a technical rebound towards GBp 1789. Moreover, technical indicators show an oversold condition which strengthens this bullish scenario.

Thanks to the technical pattern and Ultra Electronics Holdings’ strong fundamentals, active investors can take a long position above GBp 1707. The downside potential is limited and the timing seems perfect to benefit from a technical rebound. The goal will be fixed at GBp 1789 in a first time. However, a bearish trend would regain the upper hand if the security crosses GBp 1707.