Summary

● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.

● The company has solid fundamentals for a short-term investment strategy.


Strengths

● The share is getting closer to its long-term support in weekly data, at BRL 15.59, which offers good timing for buyers.

● The close medium term support offers good timing for purchasing the stock.

● Historically, the company has been releasing figures that are above expectations.

● As regards fundamentals, the enterprise value to sales ratio is at 1.3 for the current period. Therefore, the company is undervalued.

● Its low valuation, with P/E ratio at 8.72 and 8.53 for the ongoing fiscal year and 2022 respectively, makes the stock pretty attractive with regard to earnings multiples.

● Upward revisions of sales forecast reflect a renewed optimism among the analysts covering the stock.

● Over the past year, analysts have regularly revised upwards their sales forecast for the company.

● For the last week, the earnings per share forecast has been revised upwards. According to recent estimates, analysts give a positive overview of the stock

● For several months, analysts have been revising their EPS estimates roughly upwards.

● The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.

● The stock is in a well-established, long-term rising trend above the technical support level at 15.59 BRL