AUO CORPORATION ● 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
● Historically, the company has been releasing figures that are above expectations.
● The stock, which is currently worth 2020 to 0.56 times its sales, is clearly overvalued in comparison with peers.
● Upward revisions of sales forecast reflect a renewed optimism among the analysts covering the stock.
● Over the past year, analysts have regularly revised upwards their sales forecast for the company.
● For the past twelve months, EPS forecast has been revised upwards.
● For the past year, analysts covering the stock have been revising their EPS expectations upwards in a significant manner.
● Analysts have a positive opinion on this stock. Average consensus recommends overweighting or purchasing the stock.
● The average target price set by analysts covering the stock is above current prices and offers a tremendous appreciation potential.
● The stock is in a well-established, long-term rising trend above the technical support level at 9.06 TWD
Weaknesses
● The share is close to its long-term resistance in weekly data. Therefore, the potential should be limited. However, a further bullish movement when crossing this resistance will be a positive signal.
● The stock is close to a major daily resistance at TWD 12.4, which should be gotten rid of so as to gain new appreciation potential.
● The company does not generate enough profits, which is an alarming weak point.
● Prospects from analysts covering the stock are not consistent. Such dispersed sales estimates confirm the poor visibility into the group's activity.
● The company's valuation in terms of earnings multiples is rather high. Indeed, the firm is getting paid 99.46 times its estimated earnings per share for the ongoing year.
