Growth Focus: Electro Optic Systems Holdings Ltd (EOS)

by Patrick Taylor

Date of Data Capture: 20/05/2020


Classification: Aerospace & Defence

Current Price: $5.26

Market Capitalisation: $917 M

Forecast EBITDA Growth: 64.52%

Yield Estimate: 0%

Consensus Price Target: $5.78

# Covering Analysts: 1* (*thin coverage warning)  

Discount at Current Price: 9.89%

Price Target Trend (3-Month): Up-Down -7.07%

Signal Timeframe: Monthly-Weekly-Daily

Trend Bias: Up-Down / Long-Short
Short-term: Positive
Medium-term: Positive
Long-term: Positive-Neutral

Recommendation: Buy

Focus: Capital Growth

Set up Notes:

·    This aerospace/defence company manufactures and develops laser-based surveillance and security systems - it was in an aggressive uptrend before the Covid19 scare and now offers a discounted entry with good forecasting.

·    Strong sales growth from 2016 drove pricing higher by 500%+ over 4 years, before falling more than 70% in the last two months - but the company retains its strong growth outlook which is expected to continue out to 2022.

·    Pricing shows an aggressive rally giving way to collapse as panic selling broke it down to major support levels, but with fresh positive signalling this could be a new recovery uptrend here.

§ Support ($): 5.00, 4.50, 4.00, 3.50 & 3.00.

§ Resistance ($): 6.00, 6.50, 7.00, 8.00 & 10.00.


This report was produced by Taylor Securities Pty Ltd, which is a Corporate Authorised Representative (Number 414063) of Bespoke Portfolio Pty Ltd (AFSL 341991). Taylor Securities and Patrick Taylor (Representative number 414064) have made every effort to ensure that the information and material contained in this report is accurate and correct and has been obtained from reliable sources. However, no representation is made about the accuracy or completeness of the information and material and it should not be relied upon as a substitute for the exercise of independent judgment. Except to the extent required by law, Taylor Securities and Patrick Taylor does not accept any liability, including negligence, for any loss or damage arising from the use of, or reliance on, the material contained in this report. This report is for information purposes only and is not intended as an offer or solicitation with respect to the sale or purchase of any securities or financial products. The securities or financial products recommended by Taylor Securities and Patrick Taylor carry no guarantee with respect to return of capital or the market value of those securities or financial products. There are general risks associated with any investment in securities or financial products. Investors should be aware that these risks might result in loss of income and capital invested. Neither Taylor Securities and Patrick Taylor nor any of its associates guarantees the repayment of capital. WARNING: This report is intended to provide general financial product advice only. It has been prepared without having regarded to or taking into account any particular investor’s objectives, financial situation and/or needs. Accordingly, no recipients should rely on any recommendation (whether express or implied) contained in this document without obtaining specific advice from their advisers. All investors should therefore consider the appropriateness of the advice, in light of their own objectives, financial situation and/or needs, before acting on the advice. Where applicable, investors should obtain a copy of and consider the product disclosure statement for that product (if any) before making any decision.

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