Growth Focus: Praemium Ltd (PPS)

by Patrick Taylor



Date of Data Capture: 15/07/2020

Name: PRAEMIUM LIMITED (PPS)

Classification: Investor Services IT

Current Price: $0.425

Market Capitalisation: $174 M

Forecast EBITDA Growth: 16.67%

Yield Estimate: 0.24%

Consensus Price Target: $0.60

# Covering Analysts: 6

Discount at Current Price: -41.18%

Price Target Trend (3-Month): Flat-Down -6.25%

Signal Timeframe: Quarterly-Monthly-Weekly

Trend Bias: Up-Down / Long-Medium

Indicators:
Short-term: Positive-Neutral
Medium-term: Positive-Neutral
Long-term: Positive

Recommendation: Buy

Focus: Capital Growth

Set up Notes:
• Wealth Management operator PPS has been in consolidation downtrend since mid-2018, ending a huge rally from 2016 - and here we see them setting up a new potential long-term uptrend.
• Performance shows a history of strong earnings growth for years, though softer figures last year exacerbated the pullback, here we find robust forecasting for sales and margin growth out to 2022 with strong positive consensus sentiment.
• Pricing shows an exponential blow-off peak in 2018 triggering a major consolidation as the top-heavy stock pulled sharply lower, but here we have major linear resistance breaking on fresh positive momentum and looks like it could run.
Support ($): 0.425, 0.40, 0.375 & 0.35.
Resistance ($): 0.45, 0.50, 0.60, 0.85 & 1.00.


Disclaimer

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