ULTRA ELECTRONICS : Approaching an interesting level
By Alexis Peyrard
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
GBX 1,775 | GBX 1,839 | GBX 1,726 | +3.61% |
The company revenues are increasing, +45% since 2008 and according to analyst previsions, sales should continue to grow in the coming years. Moreover, net margin is expected to grow of 53%, reaching 7.8% at the end of 2014 thus improving its profitability. The company financial situation is healthy, low and decreasing debt resulting in a leverage of 0.3 for the 2013 fiscal year. Finally, the current stock price show an interesting potential (+10%), considering analyst average target price.
From a technical point of view, the share is in a long term bullish trend. During the last trading sessions, a consolidation movement has pushed the stock near an interesting entry level. In fact, the Gbp 1754 support line represent a good entry point as the stock could soon regain its upward trend.
Considering technical and fundamental elements, it seems to be an appropriate timing to take a long position near the GBp 1754 support area. A first target price will be the GBp 1839 resistance. A stop loss order will be placed under the mid-term support currently tested preventing from a more important consolidation phase.