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

From a fundamental viewpoint, Debenhams seems undervalued in terms of enterprise value. Based on the current price, its market capitalization, plus its net debt, represents 0.45 times its revenues.
This valuation is only 10.3 and 10 times the two next years earnings.

Technically, the security is in a negative configuration in the short term as the bearish trend of 20-day moving average, currently at GBp 76.1, shows. Nevertheless, the stock seems in an oversold situation, near to its GBp 73.9 support in daily data. This level might stop the bearish trend in the short term.

Considering technical and fundamental elements, it seems to be an appropriate timing to immediately open a long position in Debenhams in order to benefit from the GBp 73.9 support area. A first target price will be the GBp 81.5 resistance, ie a potential of 7%. A stop loss order will be placed under the mid-term support currently tested. Only a crossing of GBp 81.5 would validate a bullish trend in order to aim a higher target price.