CVS Group plc : To new upward targets
By Etienne Veber
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
GBX 475.5 | GBX 505 | GBX 469 | +6.2% |
From a fundamental viewpoint, the group is in a good financial situation. Sales should increase by +12.3% in the current year, with a net margin of 5.65%. Analysts widely revised upward their earnings per share and revenue estimates recently, which is a reliable indicator reflecting the company's good health.
The security is in an upward trend for several months. Currently on a consolidation phase, now xceeding the GBp 484 resistance will indicate a buy signal with a target price in the area of GBp 505.
Therefore, investors will benefit from the signal given by the crossing of the GBp 484 resistance to take a long position in the stock. The objective will be set near GBp 550 (computed by swing effect). Once the position is opened, a stop loss should be fixed under the effective entry point to guard against a trend reversal.