Term: Medium
Target Price: PHP 10.95

Last Traded Price: PHP 10.28
P/E Ratio: 10.30x
P/B Ratio: 0.33x
Support: PHP 10.20
Resistance: PHP 10.95
MTD Performance: -0.96 %
YTD Performance: -3.02 %

  • The company’s performance is boosted by its international operations.
  • AGI is still facing challenges amid the pandemic given the limited capacity for non-essential activities.

AGI’s performance gets boosted by international operations, particularly from the global liquor businesses and international property sales, even amid the pandemic.

Based on its Price to book value, this stock is undervalued. In terms of price-to-earnings ratio, the 10.30x ratio is already higher than its 5-year average of 9.10x but compared with the current P/E of the PSEi, AGI’s P/E is cheaper. However, this could also mean that the investors are not bullish on the prospects of the company.

In our view, the company is still facing challenges amid the Covid-19 pandemic, particularly its domestic businesses like the casino, as non-essentials are still being limited. But its international businesses may help the company to recover. Chart-wise, it is currently trading sideways with support at P10.25, next is at P10.00. Resistance, meanwhile, is pegged at P10.95. Set a cut loss point, 5 -7% below your acquisition price.

The chart now shows positive bias after breaking above the 200-day EMA. Immediate resistance, however, is at P41.00. Failing to break this resistance may pull the stock back to its support of P38.00. On balance volume shows accumulation bias as it is bullishly diverging with the price movement.

Material in this article is obtained from sources we believe to be reliable, but its reliability or precision cannot be guaranteed. This is for the sole purpose of providing details and does not provide an offer from us to buy or sell securities mentioned in this document.


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