BAE Systems plc : Rebound on the short term support
Entry price | Target | Stop-loss | Potential |
---|
GBX 405.1 |
GBX 427 |
GBX 395.6 |
+5.41% |
---|
BAE System's stock came back to an opportune buying level and could resume its uptrend in the coming trading session.
The company's valuation is still low with a PER of 11.5x and a "Entreprise value/revenue" of 0.76x for 2013. Moreover the financial situation is healthy as shown by the leverage ratio decreasing and estimated at 1.89x for this year.
Technically, indicators are in the green in all time scales and moving averages are well oriented. A return on the 20-day moving average and the short term support at GBp 397.30 should give a new impetus to the security to join the GBp 427 resistance again.
Therefore, investors will buy BAE Systems's stocks at GBp 397.30 to aim a return towards GBp 427. A stop loss will be placed under the short term support.
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