Term: Medium Term
Target Price: PHP 8.18

Last Traded Price: PHP 7.40
P/E Ratio: 27.86
P/B Ratio: 2.13
Support: PHP 7.00 – 7.25
Resistance: PHP 8.18
MTD Performance: -9.82%
YTD Performance: -21.75%

  • In the short-run, a possible rebound is expected following a 5.01% de-cline yesterday.
  • Earnings-wise, the company’s bot-tom line increased year-on-year.

Yesterday, HOME followed the losers, falling 5.01 percent.

Total sales increased by 6.71 percent to P3.59 billion, while net profits increased by 27.38 percent year on year to P344 billion.
Despite the restrictions this year, owing to the low base impact, we foresee higher net income in the second quarter.

During the pandemic, HOME outperformed its main rival in terms of earnings rise.
On the downside, the arrival of IKEA in the country could have an effect on revenues.

Immediate and psychological supports are pegged at P7.25 and P7.00, respectively. Resistance meanwhile is at P8.18. Primary trend remains upward while the secondary is on a downtrend. We think that this movement allows investors to buy on a pullback. Set a cut loss point, 5-7% below your acquisition price.

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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