PETRONAS GAS

PETGAS
End-of-day quote BURSA MALAYSIA - 05/22
17.04MYR
-0.47%

PETRONAS Gas : A good level to buy

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Nicolas Aleksy
Contributor / Partner

Strategy published on : 05/20/2020 | 03:45

long trade
Target price hit

Entry price : 15MYR
Target : 16.5MYR
Stop-loss : 14.2MYR
Potential : 10%

The technical support around 14.5 MYR emanating from daily closing prices could trigger a technical rebound for PETRONAS Gas shares.
Investors have an opportunity to buy the stock and target the MYR 16.5.

Summary

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

● In a short-term perspective, the company has interesting fundamentals.


Strengths

● The current area is a good opportunity for investors interested in buying the stock in a mid or long-term perspective. Indeed, the share is moving closer to its lower bound at MYR 14.58 MYR in weekly data.

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

● The group's activity appears highly profitable thanks to its outperforming net margins.

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

● Predictions on business development from analysts polled by Standard & Poor's are tight. This results from either a good visibility into core activities or accurate earnings releases.

● Historically, the company has been releasing figures that are above expectations.

● The company is one of the best yield companies with high dividend expectations.

● Over the last twelve months, the sales forecast has been frequently revised upwards.


Weaknesses

● Based on current prices, the company has particularly high valuation levels.

● Below the resistance at 16 MYR, the stock shows a negative configuration when looking looking at the weekly chart.

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