Perseus Mining Limit

PRU
End-of-day quote AUSTRALIAN SECURITIES EXCHANGE LIMITED - 02/20
1.265AUD
+3.27%

Perseus Mining Limited : No turn-around in sight

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David Meurisse
Contributor / Partner

Strategy published on : 02/13/2020 | 10:20

long trade
Live

Entry price : 1.19AUD
Target : 1.44AUD
Stop-loss : 1.08AUD
Potential : 21.01%

Shares in Perseus Mining Limited do not show any sign of a slowdown in the ascending dynamic. Investors could bet on a continuation of the underlying trend.
Investors have an opportunity to buy the stock and target the AUD 1.44.

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 poor fundamentals for a short-term investment strategy.


Strengths

● Analysts expect a sharply increasing business volume for the group, with high growth rates in the coming years.

● The company returns high margins, thereby supporting business profitability.

● Thanks to a sound financial situation, the firm has significant leeway for investment.

● 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.

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

● The stock is in a well-established, long-term rising trend above the technical support level at 0.72 AUD


Weaknesses

● The stock is close to a major daily resistance at AUD 1.2, which should be gotten rid of so as to gain new appreciation potential.

● Sales estimates for the next fiscal years vary from one analyst to another. This clearly highlights a lack of visibility into the company's future activity.

● Financial statements have repeatedly disappointed market stakeholders. Most often, they were below expectations.

● The company's sales previsions for the coming years have been revised downwards, which foreshadows another slowdown in business.

● For the last twelve months, the analysts covering the company have given a bearish overview of EPS estimates, resulting in frequent downward revisions.

Zonebourse.com 2020
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