Strategy published on : 09/16/2020 | 02:44
Entry price : 28.95HKD
Target : 40HKD
Stop-loss : 22.75HKD
Potential : 38.17%
Shares in China MeiDong Auto Holdings Limited show a positive technical chart pattern over the medium term. The timing to jump back on the rising trend seems good.
Investors have an opportunity to buy the stock and target the HKD 40.
● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
● According to sales estimates from analysts polled by Standard & Poor's, the company is among the best with regard to growth.
● The group usually releases upbeat results with huge surprise rates.
● Upward revisions of sales forecast reflect a renewed optimism among the analysts covering the stock.
● Over the last twelve months, the sales forecast has been frequently revised upwards.
● Analysts have a positive opinion on this stock. Average consensus recommends overweighting or purchasing the stock.
● The stock is in a well-established, long-term rising trend above the technical support level at 13.8 HKD
● The company benefits from high valuations in earnings multiples.
● The company is not the most generous with respect to shareholders' compensation.
● The three month average target prices set by analysts do not offer high potential in comparison with the current prices.