Booker Group : To new upward targets
By Maxime Nonglaton
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
GBX 92.25 | GBX 0 | GBX 88.2 | -100% |
From a fundamental viewpoint, the company is trading at a low level as shown by the ratio “entreprise value/revenue” at 0.32x. Besides, analysts polled by Thomson Reuters have regularly revised upward EPS estimates. Consequently, profitability is improving, showing a relatively good financial health of the company.
Graphically, the security is up 25% since the beginning of the year. It seems able to continue this uptrend supported by moving averages and will soon test the GBp 93.3 mid-term resistance. We anticipate a crossing of this level, given the upward orientation of the stock in the medium and long term. Above GBp 93.3, a new bullish signal will be given.
Taking into account all these elements, investors could buy the stock at the current price. The target price is set above the GBp 93.3 mid-term resistance. A stop loss will be fixed below the GBp 90.3 pivot point, threshold that would invalidate the strategy.