Shares in Petrofac gain 0.6 percent, outperforming a 0.7 percent lower FTSE 100 index, ahead of a trading update due on Tuesday, and following a recent Mexican contract award, with Galvan Research bullish on the stock.
“Recent weeks have seen Petrofac shares drift back into bargain territory, and now with the contract win in Mexico and potential long term benefits for the group, there could be significant upside for the shares from this point on. On this basis, the Galvan Research team rate the shares as a buy near December support,” says Andrew Gibson, Head of Research at Galvan.
“Petrofac shares have returned to their December support zone below 1,400 pence, and while the 1,370 pence intraday support region remains in place, there is implied upside for the stock to test the 200-day moving average zone at 1,500 pence as new resistance over the near term,” Gibson adds.
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