Stagecoach Group plc : An opportune entry level
Entry price | Target | Stop-loss | Potential |
---|
GBX 346.8 |
GBX 0 |
GBX 338.9 |
-100% |
---|
The GBp 343.8 support, currently tested, should allow Stagecoach Group to rally again.
The company displays an attractive valuation: it is valued at 11.9 times its EPS estimates for 2016. This attractiveness is confirmed by analysts consensus. They target on average a 17% appreciation potential.
The value, currently oversold, evolves within a downtrend in the medium term. In the short term, this trend could be reversed as it approaches the GBp 343.8, level from which the bullish run could start wide-range movements. This relevant support on both daily and weekly data represents a buying opportunity in the context of a foreseeable technical rebound toward GBp 358.4.
This situation calls for Stagecoach Group buys at current prices with an upside potential to GBp 358.4. This trading strategy will require a stop loss below GBp 343.8.
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