Playtech plc : Strong financials support the rise
By Florian Girard
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
GBX 890.5 | GBX 0 | GBX 870 | -100% |
The company’s fundamentals are still strong. As underlined by its very good Surperformance ratings, the firm has sound finances, a high profitability and significant revenue growth. Analysts remain almost exclusively buyers with an average target price displaying a +9% potential. Moreover, they have largely upward revised their EPS and sales estimates.
From a technical viewpoint, the security is trading in a bullish trend in the short and the long term. With increasing moving averages we may assume there will be no reversal in the coming trading sessions. A recent pullback brought back the share near the GBp 875.7 area. This threshold is very likely to initiate a technical rebound.
Therefore, taking into account the strong fundamentals and technical patterns, it seems opportune to open a long position at the current price in order to benefit from a possible reversal. The first target price is the GBp 924 resistance. A breakout of this level will be a new bullish signal for higher target price. A stop loss will be placed under the GBp 875.7 short term support, threshold that would invalidate this trading strategy.