Dear all
This week, Aztech has caught my attention amid rising volume with its 1QFY22F business update just around the corner. It has fallen approximately 39% from an intraday high of $1.56 on 27 Apr 2021 to close at $0.950 last Thursday.
Let’s take a look on the interesting points and potential risks on Aztech.
Interesting points
- a) Analysts like Aztech with average target price $1.44
With reference to
Figure 1 below, 4 analysts cover Aztech and all rate it a buy. Average analyst target price is around $1.44. If the analysts are right, Aztech offers a potential capital upside of around 52% compared to its closing price $0.950!
Fig 1: Aztech offers potential capital upside of around 52%
Source: Bloomberg 12 Apr 22
- b) Attractive valuations
Based on UOB Kayhian tech report dated 11 Apr 22 (see
Table 1 below), Aztech has the lowest forward FY22F PE valuation among tech shares at 8.1x. with the average around 12.2x....
