Premier Farnell shows relatively strong fundamentals and is coming back to attractive prices.

From a fundamental viewpoint, Premier Farnell is undervalued in terms of enterprise value and P/E ratio. Based on the current price, its market capitalization, plus its net debt, represents 1.02 times its revenues expected for 2015. The important yield is an argument for mid-term investors, indeed with more than 5%, it gives an important reward every year.

After several weeks of horizontal fluctuations within the mid-term range GBp 206 / GBp 240.5, the stock is coming back close to the lower limit of the range.
Moving averages are flat and technical indicators illustrate the oversold situation. The GBp 206 area could cause, as usual, a positive reaction for the coming trading sessions and allow a technical rebound towards the GBp 221.1 mid-term resistance and then the long-term target price at GBp 240.5. In weekly data, the range is clearly drawn and will militate for opening a long position near the GBp 208.6.

In consequence, the current area is pertinent to buy the stock Premier Farnell with 2 objectives : GBp 221.1 in the short term and then the upper limit of the trading range (GBp 240.5). The stop-loss will be triggered at GBp 203.8.