BE Aerospace, manufacturer of aircraft passenger cabin interior products, shows relatively strong fundamentals and is coming back to attractive price.

However, analysts have revised slightly downward their earnings forecasts. With an EPS estimated at USD 2.78 for this year and USD 3.34 for the next year, BE Aerospace is currently paid 13.84 and 11.52 times the results.

The security follows a downward trend in the short term, under the USD 40.9 resistance area (daily data). However, the selling pressure could run out of steam soon. Whereas the stock shows an oversold condition, the USD 37.50 support area currently tested might stop the bearish trend in the short term.

Considering technical and fundamental elements, it seems to be an appropriate timing to take immediately a long position in BE Aerospace in order to benefit from the support area. A first target price will be the USD 41 resistance, ie a potential of 6%.

A stop loss order will be placed under the mid-term support at USD 37.5. Only a crossing of USD 40.9 would validate a bullish trend in order to aim a higher target price.