Bodycote plc : An opportune reversal
By Alexis Peyrard
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
GBX 719.5 | GBX 0 | GBX 696.3 | -100% |
The group’s fundamentals are strong and its Surperformance ratings highlight its qualities in term of profitability, finances and business predictability. Thus, net margin, at 11.8% last year, offers an interesting level and should progress towards 13.7% by 2016. Moreover, the company has reduced its debt exposure and finished last year with a positive cash position. The analysts’ consensus is largely positive and the stock offers an interesting potential considering their average target price.
Bodycote shows a bullish configuration in the medium and long term. After, a slight consolidation phase, the stock has reintegrated the rising channel. Weekly moving averages are still well-oriented and thus the current pattern shows a trend that remains very progressive. The stock should accelerate towards its recent highs.
Consequently, investors could take a buyer position at the current prices in order to benefit from an interesting entry point. Nonetheless, a stop loss will be placed under the entry point in case of a further degradation.