Debenhams Plc : Upon contact with a significant support
By Etienne Veber
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
GBX 75.15 | GBX 0 | GBX 73.9 | -100% |
From a fundamental viewpoint, the security has a low valuation with an EV/Sales ratio of 0.44x. By 2007, sales are expected to increase to 2.95 billion euros. To date, P/E ratio for 2015 is estimated at 10.36 and at 9.96 for 2016, which is low.
The area of the GBp 75.15 support should enable the stock to have a new bullish trend. The long term support in this area confirms its relevance. Technically, above these levels, 4-traders analysts are optimistic and count on a return toward the short term resistance and the trendline.
Ideally, investors will take a long position nearby the GBp 75.15 support currently tested, in order to benefit from a technical rebound. The GBp 81.5 is the first goal. This strategy should be covered by a stop loss placed under the GBp 75.15 support because a breakdown of this level would invalidate it.