ACCUMULATE ON DIPS
Target Price: PHP 14.00

Last Traded Price: PHP 12.72
P/E Ratio: 6.56x
P/B Ratio: 0.74x
Support: PHP 12.70
Resistance: PHP 14.00
MTD Performance: -3.87%
YTD Performance: -1.53%

  • Earnings figures for the first quarter are due to be published today or during the next week.
  • The price range is P12.70 to P14.00.
  • P/E and P/B levels are undervalued.

The first-quarter results report is due to be released today or during the next week. Good sentiment can be shown by higher year-on-year rise, while negative growth may indicate the opposite. According to the company’s forecast, they anticipate a difficult year but hope for a stronger year than 2020.

The restrictions have had an effect on its FY2020 bottom line, which has decreased by 19% year on year. Despite this, the company’s P/E and P/B levels remain undervalued.

Support is at P12.70 on the chart, while resistance is at P14.00, or the 50-day EMA. If it slips further, the 200-day EMA, or about P12.30, would be the next level of support. It is still close to the oversold mark, which could lead to a recovery. However, considering the market’s pessimistic sentiment, traders can set a stop loss point that is 5-7 percent lower than their acquisition point.

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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