Monday, December 6

Indra faces the moment of truth for the assault on the all-time highs


The titles of Indra They chained a six-day streak up and regained the psychological level of 11 euros, the levels prior to the coronavirus pandemic.

The good results presented by the technology group, the increase in business guides and the return of the dividend encouraged investors. In addition, the geopolitical context in Afghanistan will boost defense spending, according to Finanzas.com.

In addition, the company’s accounts showed a clear operational and financial improvement that the market is pricing. The results were “solid, with an upward orientation and a restoration of the dividend,” said analysts at JP Morgan.

The order book is close to historical highs, which provides “some peace of mind in order to see continuity in growth in the medium term”, explained the analysts of Sabadell Bank.

Indra, in key areas to accelerate the rebound

The sources consulted indicate that all these catalysts contributed to accelerating Indra’s rebound. Since the lows at the end of last year, the value accumulates a 120 percent revaluation, currently reaching February 2020 levels at 11.40 euros,

This is the next resistance Indra will face, the 11.4 euros. It is true that overbought is high and a certain consolidation or correction at this point cannot be ruled out.

In the opinion of Josep Codina, head of analysis INVESTMENT and Finanzas.com, this area between 11.3 and 11.4 euros represents the moment of truth for Indra.

The rebound movement is important, Indra overcame the resistance of 10.5 euros with relative ease and with volume support.

The path to all-time highs

In this way, if Indra “manages to exceed this level of 11.3-11.4 euros in a consistent way and with volume, it will have left a good ground pattern and will be able to continue with the advances and even seek the area of ​​historical maximums”, Codina stressed.

With this diagnosis coincided Eduardo Faus, Analist of Rent 4 Bank: “The overcoming of 11.4 euros would open the way to the all-time highs, between 14 and 15 euros,” said this expert. Up to this zone, there would be upside potential around 30 percent.

October, the month of Indra

Although the results unleashed the last momentum, the truth is that Indra began to warm up its engines in October, when analysts already assumed that the group would recover the dividend, as advanced by Finanzas.com.

All in all, the key moment was in the last week of October, with “the rise of the expansive triangle that it had been describing since last summer, also coinciding with its respective average of 200 sessions: the 9.7 euros were the trigger of exit ”, he said Jose Luis Herrera, Analyst at Global Investment Bank.

According to his analysis, Indra’s technical movement is orthodox. Resistance around 11.4 euros coincides with the upward projection of the section prior to the formation of the proposed triangle, from the breaking point.

Indra, one of the most recommended values ​​of the IBEX 35

The consensus of fundamental analysts at Finanzas.com was somewhat more restrained and calculated a target price for Indra of 12 euros, which still leaves a rebound margin of 9 percent.

However, 75 percent of the experts who follow the stock recommended buying, for a 20 percent who chose to keep and only 5 percent who opted to sell Indra securities. This makes Indra one of the most recommended stocks on the IBEX 35.

The sum of fundamental projections, techniques, results and dividends have placed Indra on the launching pad. Codina points out that the company had already had a good year, but it was the results that definitely lit the bullish fuse.



www.finanzas.com

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