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

Sell – Informa - 22 March 2018

Trade Parameters

  • Opening Price: 715p
  • Stop Loss: 735p (20p/2.8% above)
  • Profit Limit: 660p (55p/7.7% below)
  • Reward vs Risk: 2.8x
  • CFD Margin: 8%

Technical Observations – For

  • Falling highs resistance; day 4 of sell-off
  • Double breach of support
  • RSI & Stochastics correcting from overbought
  • Stochastics broken below MACD
  • Directional Indicators converging bearishly

Technical Observations – Against

  • No bearish Point & Figure chart reversal
  • No bearish cross by directional indicators
  • Momentum still positive
  • 100-day MA could act as support

Analyst Comments

Technicals suggest bearish reversal. Publishing industry under pressure and B2B events sector subject to economic sentiment. Takeover of with UBM could merely be one of convenience, and too expensive. Just a 3% dividend yield.

Consensus is very bullish but M&A uncertainty has prevented the shares from trading fresh highs. And as the adage goes, “if everyone’s a buyer, who’s left to buy?”. Recent reversal could encourage some brokers to downgrade to Neutral, perhaps even negative, and pull back price targets.

Next Event:  AGM, 25 May; H1 Results, 25 Jul; UBM ex-div, 19 Apr; UBM H1 results, 26 Jul

Latest Broker 12-Month Consensus:  80% Buy, 20% Hold, 0% 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 % -0.2 3.5 -1.1 7.6 11.7 13.3 34.4 52.4 51.9
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