DAESANG CORPORATION

A001680
End-of-day quote Korea Stock Exchange - 05/25
26150KRW
+0.77%

Daesang Corporation : The resistance should give in

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Nicolas Aleksy
Contributor / Partner

Strategy published on : 05/22/2020 | 11:50

long trade
Live

Entry price : 25950KRW
Target : 29950KRW
Stop-loss : 22850KRW
Potential : 15.41%

Daesang Corporation shares are reaching an interesting resistance zone. The current technical chart pattern suggests that a breach of this level could lead to new upside potential.
Investors have an opportunity to buy the stock and target the KRW 29950.

Summary

● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.

● The company has solid fundamentals for a short-term investment strategy.


Strengths

● There is high visibility into the group's activities for the coming years. Outlooks on future revenues from analysts covering the equity remain similar. Such hardly dispersed estimates support highly predictable sales for the current and upcoming fiscal years.

● The stock, which is currently worth 2020 to 302.05 times its sales, is clearly overvalued in comparison with peers.

● The equity is one of the most attractive in the market with regard to earnings multiple-based valuation.

● For the last week, the earnings per share forecast has been revised upwards. According to recent estimates, analysts give a positive overview of the stock

● For the last few months, EPS revisions have remained quite promising. Analysts now anticipate higher profitability levels than before.

● Analysts covering this company mostly recommend stock overweighting or purchase.

● The average target price set by analysts covering the stock is above current prices and offers a tremendous appreciation potential.

● Within the weekly time frame the stock shows a bullish technical configuration above the support level at 19600 KRW


Weaknesses

● Stock prices approach a strong long-term resistance in weekly data at KRW 26450.

● The stock is currently in contact with a medium-term resistance that must be gotten rid of so as to resume the upward trend.

● The group usually releases earnings worse than estimated.

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