Go-Ahead Group is trading in a long term bullish trend and several arguments are in favor of the continuation of this trend.

The company’s fundamentals are strong. Sales should reach GBP 2.6 billion this year. Moreover, analysts from the Thomson Reuters consensus have largely revised upward their sales and EPS estimates, proof of the good dynamic on the activity.
The group seems to be undervalued compared to its peers with an EV/sales ratio at 0.40 for 2014 estimates.

Technically, the security shows a bullish configuration on all time scales. The recent consolidation movement has brought the stock to an interesting entry level. Moving averages are well oriented and support the prices progression.

Thanks to these good indicators, it seems relevant to take a long position in Go-Ahead Group at the current price. The target is the GBp 2407 resistance. A stop loss will be set under the GBp 2268 short term because a breakdown of this level would damage technical pattern.