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.