BAE Systems plc : An appropriate purchase level
Entry price | Target | Stop-loss | Potential |
---|
GBX 459.5 |
GBX 0 |
GBX 449 |
-100% |
---|
BAE Systems' share price was heavily penalized and is now in an oversold situation near a significant support level.
Financial forecasts are encouraging, indeed, net income should have a 2 digits growth rate in 2015. The share offers a yield over 4%. The consensus average target price is displaying a +17% potential.
Technically, the stock has a bearish trend in the short term but keeps a bullish tendency in the long run. Back on a relevant threshold the share should soon initiate a rebound. Indeed, this area is convergent with the rising lower trend line and the 100-week moving average.
Consequently, investors may open a long position at current prices and target a reversal toward the GBp 480 area. A stop loss order should be set at GBp 449 in case of further correction.
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