Getting latest data loading
Home / Trade Alert / Sell – Bunzl

This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.

Sell – Bunzl - 16 March 2018

Trade Parameters

  • Opening Price: 2035p
  • Stop Loss: 2080p (45p/2.2% above)
  • Profit Limit: 1930p (105p/5.2% below)
  • Reward vs Risk: 2.3x
  • CFD Margin: 5%

Technical Observations – For

  • Falling highs resistance; day 3 of sell-off
  • Shares turned down; Momentum plateaued
  • Stochastics correcting from overbought
  • Positive Directional Indicator turning over

Technical Observations – Against

  • MACD & RSI still rising
  • No bearish Point & Figure chart reversal
  • No bearish cross by directional indicators
  • Momentum still positive

Analyst Comments

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

Broker Ratings & 12-Month Target Prices (Bloomberg)

12 month (daily) - MACD, Stochastics, Trend Strength, RSI, Momentum

Share 1wk 1m 3m 6m 1yr 2yr 3yr 4yr 5yr
Perf % 0.6 -0.2 0.8 -9.1 -12.6 2.7 10.2 29.9 56.6
Back to Top

This research is produced by Accendo Markets Limited. Research produced and disseminated by Accendo Markets is classified as non-independent research, and is therefore a marketing communication. This investment research has not been prepared in accordance with legal requirements designed to promote its independence and it is not subject to the prohibition on dealing ahead of the dissemination of investment research. This research does not constitute a personal recommendation or offer to enter into a transaction or an investment, and is produced and distributed for information purposes only.

Accendo Markets considers opinions and information contained within the research to be valid when published, and gives no warranty as to the investments referred to in this material. The income from the investments referred to may go down as well as up, and investors may realise losses on investments. The past performance of a particular investment is not necessarily a guide to its future performance. Prepared by Michael van Dulken, Head of Research

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.
.