Wednesday, 25 September 2024, Pre-Market
Share Name: Absa Group
Ticker: ABG
The sell-off at the end of Q1 gave clients an opportunity to buy. It was Monday 25 March when the pre-market note was published which included my view as well as the automated price action reading via the Tactical Trading Guide. From R140, the share price rallied to R183.
The original insert, with time-stamped chart is shown below:
At current levels, the fundamental valuation remains appealing, with the share commanding a 7.7x price-to-earnings ratio and a 7.8% dividend yield.
Technically, the share has developed a symmetrical triangle formation, which reflects a consolidation before a potential breakout.
Over the medium term, the upside targets are R205 and R212 and is invalidated below R155.
Last close: R175.61
Lester Davids
Analyst: Unum Capital
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