Grainger plc : Two levels for short
Entry price | Target | Stop-loss | Potential |
---|
GBX 106.1 |
GBX 98 |
GBX 115.5 |
+7.63% |
---|
Grainger PLC is a residential property company. The Company owns and operates residential rental properties in the United Kingdom and Germany; develops residential-led mixed use projects and retirement housing and offers residential fund and asset management services.
Even if turnover is expected with a growth against last year, earnings per share should suffer from a sharp decline -88%, according to Bloomberg’s estimates to GBP 0.02 per share. Concerning “Enterprise value / sales” ratio, the share seems overvalued.
Technically the share has still a potential in order to reach GBp 113 long-term resistance. This level could offer a good point of entry for investors with short strategy on the stock. In fact we forecast a bearish trend below GBp 113, with a first target price at GBp 98. If the level of GBp 113 will not reached by the stock we advise to enter with a short order below GBp 98 aiming GBp 85. In both case we suggest a stop loss, in the first case at GBp 115.5 in the second case at GBp 100.2.
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