Xaar is skyrocketing since march and we expect this trend to continue, in the coming trading sessions.

From a fundamental viewpoint, the company is strong. Sales are expected to rise by more than 50% in 2013. Further, net margin is improving with 21% expected this year, compared to 14.6% in 2012. Analysts from the Thomson Reuters consensus continue to revise upward their earnings per share estimates (multiplied by 2 between march and today). The P/E ratio remains moderated for a soaring stock like this one (21x estimated for 2013).

Prices have been multiplied by 3 since march and there is no sign of weaknesses, for the moment. The 20-day moving average has been supporting the stock for 5 months : each time the security is back to the latter, it know a sharp increase. Thus, the proximity of the 20-day moving average, combined with the GBp 837 support argue in favor of a sharp bullish movement, in the coming trading sessions.

In consequence, investors can take a long position in Xaar with a first target price at GBp 898, then GBp 960 by extension. A stop loss will be set under the short term support at GBp 837.