Zhongsheng Group Holdings Limited : The underlying trend is in force again
Entry price | Target | Stop-loss | Potential |
---|
HK$63.5 |
HK$80 |
HK$55 |
+25.98% |
---|
The current trading zone is interesting to the point that investors should pay attention to the stock and anticipate a return of the underlying upward trend.
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● Historically, the company has been releasing figures that are above expectations.
● The stock, which is currently worth 2021 to 0.9 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 last twelve months, the sales forecast has been frequently revised upwards.
● Analysts covering this company mostly recommend stock overweighting or purchase.
● The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.
● The tendency within the weekly time frame is positive above the technical support level at 53.5 HKD
Weaknesses● The company is not the most generous with respect to shareholders' compensation.
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