Shares in Serco Group (SRP.L) gain 0.5 percent, outperforming a 1 percent fall by the FTSE .FTSE 100 index, with CFD specialists Galvan rating the stock a "buy" and highlighting technical factors as supportive.
“Recent broker backing for Serco shows a surprisingly objective view of the company’s prospects, as unlike many other reviews it shows that the impact of Government spending cuts on the outsourcing group is less severe than at first thought,” says Andrew Gibson, head of research at Galvan.
“On this basis, and coupled with the rebound off the share price range floor, Galvan Research views Serco shares as a buy,” Gibson says.
Galvan also points out that although near term price action for Serco has been relatively volatile, the overall pattern of a 540 pence to 640 pence range appears currently well entrenched.
The broker says the view is that while there is no break back below April’s 540 pence lows, the upside for Serco should be towards the post-December resistance zone through 600 pence.
Outsourcing peer Capita Group (CPI.L) also sees support, up 0.1 percent.
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