Ferrexpo plc : Strong fudamental for a rebound
By Etienne Veber
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
GBX 141.3 | GBX 0 | GBX 134.7 | -100% |
Surperformance rating shows that Ferrexpo is a good investment in term of valuation (P/E ratio of 5.17 for 2014). Moreover, analysts are currently more confident about the future EPS for 2014 and 2015.
Technically, the security is in a negative configuration in the short term as the bearish trend of 20-day moving average shows. Nevertheless, the stock seems being oversold, near to its GBp 137 support in daily data, due to its 2% down on last trading sessions. This level might stop the short term slumping.
Thanks to the technical pattern and Ferrexpo’s strong fundamentals, active investors can take a long position above GBp 137. The downside potential is limited and the timing seems perfect to benefit from a technical rebound. The target will be fixed at GBp 154.6 in a first time and then at GBp 160. However, a bearish trend would regain the upper hand if the security crosses GBp 137.