This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
Trade Parameters
Technical Observations – For
Technical Observations – Against
Clear technical near-term short-trade opportunity. Outsourcing industry under pressure after sector peer Carillion’s collapse and Capita’s profits warning. Results positive at end-Feb, but negative read-across from MITIE Group (shares -3%) this morning, which expects lower 2017/18 profits. Just a 2% dividend yield.
Consensus is bullish, but industry woes have seen brokers turning more cautious. Further share price weakness may encourage positive and/or neutral brokers to downgrade. Note the consensus target is for a return to Jan 2017 highs, which may be a bit much given the outsourcing sector’s structural issues and recent re-rating.
Next Event: Q1 Trading Statement, 18 Apr
Latest Broker 12-Month Consensus: 50% Buy, 31% Hold, 19% Sell (full breakdown on request)
Source: DowJones Newswires, Reuters News, Bloomberg or Company Press releases
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