Mitchells & Butlers plc : Waiting for the buy signal
By Rosanna Santana
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
GBX 450.3 | GBX 465 | GBX 427.4 | +3.26% |
Stock revenues are expected to increase for this year. Forecasts on debts are lower by 2% in comparison to last year; it is going to be the cornerstone for an incremental net income (9%). Analysts consensus are positive on the stock. With a low P/E ratio of 12.4 for the current exercise, the share becomes more attractive for a long term position.
As in the short term the technical configuration is positive, a downturn should take place in the next days till being nearly the temporary line at GBp 434.40; this return should be supported by the 50-days moving average.
This technical scenario tied to strong fundamentals for the company allows most active investors to take a long position when the stock comes to GBp 434.40. The target price is fixed at GBp 465.00 and a stop loss will be fixed under GBp 427.40.