Premier Farnell plc : Running out of steam as opportunity
By Camille Chretien
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
GBX 208.1 | GBX 0 | GBX 200.5 | -100% |
The group enjoys encouraging sales estimates from the Thomson Reuters' consensus. Moreover, the valuation of the company is quite low with a PER of 12.58x and a EV/sales ratio of 1.01x for 2014.
Following a bullish wave, the stock now shows a slight decline that led it towards its GBp 201.1 medium-term support. On this level, remobilization of buyer flows allowed a rebound and the security is now supported by the 100-day moving average. Hence, prices may resume its upward trend and reach its GBp 218.5 short term resistance.
Investor can take a long position at the current price to benefit from the medium and long term trend. The objective is GBp 218.5 then GBp 236.3. A stop loss is placed under GBp 201.1.