Premier Farnell plc is close to an area that might stop the downward trend.

In 2013, the profitability of Premier Farnell plc should improve as the net margin growth shows. It should be at 7.55% in 2015 against 5.87% for the current year and sales are expected to increase. To date, PER for 2013 is estimated at 11.4x and at 9.7x for 2014. The company is valued 0.92 times revenues estimated for this year. This ratio should be taken into consideration by investors.

From a technical viewpoint, the trend is neutral in the short term. The security is trading between GBp 171.8 and GBp 195.8. The latest downtrend pushed the security upon contact with significant level (convergent point with 50 and 100-day moving average and GBp 181 technical line).

Ideally, investors will take a long position nearby the GBp 181 currently tested, in order to benefit from a technical rebound. The GBp 195.8 is the first goal. This strategy should be covered by a stop loss placed under the GBp 176.