Card Factory plc : We anticipate a reversal
By Florian Girard
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
GBX 319.2 | GBX 0 | GBX 304 | -100% |
The firm enjoys a very good Surperformance rating that underlines its profitability and its business predictability. The current share quote displays a +7.3% potential to reach the consensus average target price. Financials forecasts are encouraging, indeed, sales and EBITDA should rise about 8%.
The stock has been evolving in a bullish channel for the last 12 months. Nevertheless, a recent decline brought back the share near a relevant support level. This area is strengthened by closeness of the rising 100-day moving average and the lower trend line.
Consequently, investors may open a long position at current prices and target a reversal toward the GBp 348 resistance. A stop loss should be set at GBp 304, in case of further correction.