Shares in Cobham COB.L shed 1.5 percent, reversing some gains seen earlier in the week after a Credit Suisse upgrade, with Galvan Research seeing the defence firm’s stock as a “technical sell”.
“Cobham shares have this week backed off from the top of a post-May 210-240 pence trading range. While below the 200-day moving average at 239 pence, we believe a retest of the early 220 pence September support zone is likely,” says Andrew Gibson, head of research at Galvan.
“The disappointing August update (from Cobham) showed uncertainty and delay in the group’s markets - a factor also likely to impact on profits in H2 2010,” Gibson adds.
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