Member Since 8 December 2015
Last Seen: 3 Mar '20
Posted on 22 June 2017, 1:46 PM

Cobham Plc a compelling buy at the current level

Topics: Analysis
Other Insights on Related Shares: COB.L
Related Shares: Cobham Share Price

Cobham plc. is a technology and services provider in commercial and defense and security markets. It operates in four segments. The Communications and Connectivity segment provides equipment and solutions to enable connectivity across a range of environments in aerospace, avionics, satellite and radio, wireless and mobile connectivity markets. The Mission Systems segment provides safety and survival systems for extreme environments, aerial refueling systems and wing-tip to wing-tip mission systems for fast jets, transport aircraft and rotorcraft. The Aviation Services segment delivers outsourced aviation services, including military training, special mission flight operations and outsourced commercial aviation. The Advanced Electronic Solutions segment provides solutions for communication on land, at sea, in the air and in space through off-the-shelf and a range of products, including radio frequency, microwave, and microelectronics, antenna subsystems and motion control solutions.

Cobham Plc is a compelling buy at the current level. The stock finished trading on the London stock exchange at 139.9p a share, up by 0.87% compared to the previous close. The stock has had its share of correction as it has corrected from 141p a share to the low of 126p a share. However, we expect the stock to start its northward journey and continue it’s up move. On 19th June, the stock had made a marubozu candle which implies the start of bullish trend. The stock has also been trading above its 20 day moving average (DMA), 50 DMA and 100 DMA of 135p, 133p and 122p respectively. A stock trading above its respective moving averages is a bullish sign as well. Also, the momentum oscillators like RSI and MACD also points out that stock is likely to move up. Therefore, we advise traders or investors to initiate long positions in Cobham Plc at the current level with a short term target of 144p and 150p respectively. The time to achieve these targets could be 20 days to one month. However, the immediate resistance of the stock is at 143p and any breakout above that would take the stock to new highs. Hence, traders or investors are advised to keep an eye at the respective levels and accordingly hedge their positions.

Let’s throw some light on the latest news of the company. The company announced lately that it would be showcasing its technology breakthroughs and innovation at this years' Paris International Airshow. Also, on 14th June, Cobham SATCOM and Inmarsat, the world's leading provider of global mobile satellite communications announced that United Airlines will participate in a technology evaluation of Swift Broadband-Safety, Inmarsat's next generation flight deck communications platform. Mr. Andy Beers, director of global aero sales commented on this, “We are excited about this latest opportunity to contribute to the ongoing evaluation of Swift Broadband-Safety as it supports our development of communication technologies Cobham SATCOM is rolling out to meet the future needs of the aviation community, particularly our AVIATOR S Series next generation product line, designed specifically to leverage Inmarsat's new SB-S services”

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