The FirstGroup share price is up by 1.5 per cent in today’s trading session after opening with a huge gap-up of almost 4 per cent. Today’s price gains extend yesterday’s 1.4 per cent price gains in the market and mark the third consecutive trading session that FirstGroup share price is on the rise.
Despite the recent price gains in the markets, the FirstGroup share price has traded within a very narrow margin of between 99p and 130p for almost three months. For instance, in October, the FirstGroup share price remained flat, and in November, the company only managed to gain around 2 per cent.
The FirstGroup Share Price Forecast
As seen above, the FirstGroup share price has mostly traded in a horizontal market for the past three months. The company has also not had significant fundamental factors that have affected its prices for the past few months.
However, analysts such as the Berenberg Bank are still bullish on the company, with their latest share price target price indicating a potential 19 per cent gain at 130p from the current 107p. In the past month, the company has also continuously received a buy rating from research firms, including Royal Bank of Canada, who last month raised their price objective on shares from 160p to 165p.
However, based on the data available today, the company’s recent price action, and macroeconomic data from the UK, such as inflation, my FirstGroup share price analysis shows a continued horizontal trend for the next few weeks. I also expect the price to continue trading within the narrow range of 99p and 130p for the foreseeable future. A trade above or below these levels will invalidate my sideways trend price analysis. Trading below the 99 price level will also indicate the FirstGroup share price has entered a long-term bearish trend.