The bearish target price (GBp 92.7) we set, on 26 July, has been reach. The breakdown of the GBp 91.75 would open new bearish objectives for the stock.

Regarding company’s fundamentals, we can note major weaknesses. The debt of the company remains an issue and could threaten its solvency ; the leverage is estimated at 3.58x for the current year. Also, analysts from the Thomson Reuters consensus regularly revise downward their EPS estimates.

Technical analysis shows a bearish trend in the short-term : indeed, prices are very close to a major support area located at GBp 91.75 which, once broken, could extend the downward movement. Moreover, moving averages are trending down which reduces the probability for a short-term rebound.

Therefore, investors can take a short position after the breakdown of the support that should lead to a new phase of decline. The price target is set at GBp 82.6. A stop loss order will be placed above the GBp 91.75, threshold that would invalidate the strategy.