Elementis plc : An interesting level
Entry price | Target | Stop-loss | Potential |
---|
GBX 275.1 |
GBX 298 |
GBX 264.6 |
+8.32% |
---|
Elementis shows strong fundamentals. Its Surperformance ratings highlight its qualities in terms of profitability, business predictability and a sound financial situation. In facts, company’s sales and margins are growing. Thus, revenue should reach GBP 819 million this year while net margin is expected to approach 15%. The average consensus is on “Outperform” and the firm delivers around 3% and is therefore an interesting stock for investors looking for a yield.
From a technical viewpoint, prices are evolving near to their ascending trendline. This line has supported the stock progression over the long term. Well oriented moving averages militate for a bullish reversal on the current price area.
Therefore a long position could be taken at the current price with a target set at GBp 298. Nonetheless, a stop loss will be placed under the entry point to avoid any further consolidation.
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