Buy on Break out
Term: Medium
Target Price: PHP 4.30

Last Traded Price: PHP 4.07
P/E Ratio: 12.69x
P/B Ratio: 0.66x
Support: PHP 3.95
Resistance: PHP 4.15
MTD Performance: 2.26 %
YTD Performance: -4.91 %

  • Secondary trend which is downward bias may break if it breaches the current resistance line.
  • One of the defensive stocks to strive amid the pandemic.

The corporation was impacted by the Covid-19 epidemic in 2020, which reduced consumption and restricted excessive travel. In the fiscal year 2020, its bottom line has plummeted by 80%. Meanwhile, MPI’s net income increased in the first quarter of 2021 as a result of the sale of its two operations, Global Business Power and Don Muang Tollway.

Despite this, we believe that MPI will recover in the following months since travel restrictions are less stringent than last year, and we predict that demand will rise once the lockdown measures are relaxed. However, it is possible that it will not reach pre-pandemic levels. As a defensive company, we believe this stock is favorable for the long term.

Chart-wise, the secondary trend is still on a downtrend but there’s a possibility of a reversal if it breaks the current resistance of P4.15 and forms a higher high. Also, the 50-day EMA is about to cross above the 200-day EMA. Support is pegged at P3.95. 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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