GKN : Close to important levels
By Oscar Salza
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
GBX 176 | GBX 0 | GBX 166 | -100% |
The semiannual revenue is estimated up 17% on year over year basis to GBP 3,281 million, according to Bloomberg consensus. The company shows positive financial elements and is trading “only” 7.6 times full year earnings estimates and important operating margin adds relevance to this group.
Graphically, the downward movement had pushed the share near to mid-term support and on the trend line in daily chart. Also in weekly data the share is close to long-term support. These points could play as stepping stone for a technical rebound.
Both financial and technical elements could give a good opportunity for investors with a long strategy. We fix our first target price at GBp 190 and then GBp 211, and we advise a stop loss at GBp 166.