DIP Corporation

2379
End-of-day quote Tokyo Stock Exchange - 03/31
1738JPY
+3.33%

DIP Corporation : An opportunity over the medium term?

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David Meurisse
Contributor / Partner

Strategy published on : 03/24/2020 | 09:22

long trade
Live

Entry price : 1623¥
Target : 2190¥
Stop-loss : 1390¥
Potential : 34.94%

The decline over the past weeks has brought the price of DIP Corporation shares back to an important technical support level at 1590 JPY. This represents an opportunity to take advantage of these prices levels.
Investors have an opportunity to buy the stock and target the ¥ 2190.

Summary

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


Strengths

● The share is getting closer to its long-term support in weekly data, at JPY 1590, which offers good timing for buyers.

● The close medium term support offers good timing for purchasing the stock.

● Growth progress expectations are rather promising. Indeed, sales are expected to rise sharply in the coming years.

● Margins returned by the company are among the highest on the stock exchange list. Its core activity clears big profits.

● 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.

● Over the past year, analysts have regularly revised upwards their sales forecast for the company.

● For the past year, analysts covering the stock have been revising their EPS expectations upwards in a significant manner.

● The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.

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