Halfords Group plc : Perfect timing to aim a technical rebound
Entry price | Target | Stop-loss | Potential |
---|
GBX 457.5 |
GBX 0 |
GBX 446.8 |
-100% |
---|
The GBp 448.6 support area, currently tested, might facilitate a technical rebound. The company’s fundamentals could validate this scenario.
From a fundamental viewpoint, Halfords Group seems undervalued in terms of enterprise value. Based on the current price, its market capitalization, plus its net debt, represents 0.92 times its revenues.
This valuation is equal to 13.6 and 12.8 times the two next years earnings.
Halfords Group is oversold and near to GBp 448.6. This situation gives credit to a potential technical rebound. Thus, the stock could find new energy and would rise towards the next GBp 448.6 resistance.
Therefore, the proximity of the GBp 448.6 support is an opportunity to go long on Halfords Group. The first goal is a return in the GBp 500 resistance area, that is a potential of around 9%. In fact, the security has to cross this area in order to re-establish a bullish trend in the short term. A stop loss order can be placed under the support currently tested.
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