Interactive Investor

Can Vivo Energy keep up this impressive run of form?

15th June 2022 07:54

Alistair Strang from Trends and Targets

Shares in this African petrol station owner have proved popular, rising consistently over the past few years. Independent analyst Alistair Strang looks at share price potential.

We wonder if our glance at the Shell (LSE:SHEL) share price provoked the batch of emails asking about Vivo Energy (LSE:VVO).

To explain, Vivo Energy, listed and headquartered in London, is the company behind Shell petrol stations across 23 different countries in Africa. Listed on the FTSE 250 since 2018, there certainly appeared a raft of optimism about their prospects, setting a quite different tone to the one we exhibited about Shell.

We’re sure it’s all just a coincidence but, to be fair, we had wondered where all the Shell petrol stations had gone. There used to be two locally, now each a derelict plot of fenced-off land, doubtless untouchable due to the historic risk of environmental damage to the ground.

Reminiscences aside, Vivo's share price is certainly displaying some hope for the future as above just 150p should prove capable of a lift to 170p next.

Above 170p and things become interesting for the longer term as our secondary calculation works out at an amazing 219p. Such an ambition exceeds the initial IPO high of 200p back in 2018, hopefully indicating changed days for the future as we can currently calculate a distant hope of 256p as a third level target.

To be fair, we’d rather revisit the numbers, should 219p make itself known.

Past performance is not a guide to future performance.

Currently trading around 144p, the share price needs to plunge below 110p to indicate something dreadful is going wrong.

A movement such as this would risk the share price literally halving to a future 55p, so perhaps 110p shall make an ideal stop loss level for those who just want to “fire and forget” a trade such as this.

Alistair Strang has led high-profile and "top secret" software projects since the late 1970s and won the original John Logie Baird Award for inventors and innovators. After the financial crash, he wanted to know "how it worked" with a view to mimicking existing trading formulas and predicting what was coming next. His results speak for themselves as he continually refines the methodology.

Alistair Strang is a freelance contributor and not a direct employee of Interactive Investor. All correspondence is with Alistair Strang, who for these purposes is deemed a third-party supplier. Buying, selling and investing in shares is not without risk. Market and company movement will affect your performance and you may get back less than you invest. Neither Alistair Strang or Interactive Investor will be responsible for any losses that may be incurred as a result of following a trading idea. 

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