Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Potential Upside |
|---|---|---|---|---|---|---|---|
| 12 Sep, 24 | AU | Buy | USD 27.95 | USD 30.19 | USD 32.98 | 1 day | 18.0% |
Data Powered by EOD Historical Data (“EODHD”).
AngloGold Ashanti plc operates as a gold mining company in Africa, Australia, and the Americas. The company primarily explores for gold, as well as produces silver and sulphuric acid as by-products. Its flagship property is a 100% owned Geita mine located in the Lake Victoria goldfields of the Mwanza region in north-western Tanzania. AngloGold Ashanti plc was incorporated in 1944 and is headquartered in Greenwood Village, Colorado.
Enhanced Profitability: Net Margin of 12.6% in H1 FY24 vs Industry Median of 7.3%
Increased Shareholders' Wealth: ROE of 8.1% in H1 FY24 vs Industry Median of 1.5%
Lower Liquidity: Current Ratio of 1.83x in H1 FY24 vs Industry Median of 2.12x
Working Capital Inefficiency: Cash Cycle of 109.1 Days in H1 FY24 vs Industry Median of 49.1 Days
Asset Concentration, Operational Challenges at Key Mines, South African Operations Risks, Transition and Restructuring Risks, etc.
| Entry Price | Support* | Target 1 | Target 2 |
|---|---|---|---|
| 27.95 | 22.92 | 30.19 | 32.98 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
AU's stock price recently found support at an ascending trendline and has started to rise, suggesting the potential for short-term gains. The 14-day Relative Strength Index (RSI) is currently hovering below the midpoint, which could indicate a possible move to the upside. Additionally, AU's stock is trading below both its 21-day and 50-day Simple Moving Averages (SMAs), which might signal an impending retest and potential rebound from these key technical support levels.
As per the above-mentioned technical indicators analysis, a ‘Buy’ rating has been given to AngloGold Ashanti plc (NYSE: AU) at the closing market price of USD 27.95 as of 12 September 2024.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Basic Materials Industry: Gold
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| AU AngloGold Ashanti plc |
-0.56 2.34% | 23.34 | 18.52 | 7.49 | 2.42 | 3.04 | 2.57 | 10.62 |
| NEM Newmont Goldcorp Corp |
-0.25 0.65% | 38.03 | - | 11.61 | 4.29 | 2.48 | 4.55 | 26.44 |
| ZIJMF Zijin Mining Group Co Ltd-H |
- -% | 1.85 | 16.00 | 16.89 | 0.15 | 2.75 | 0.20 | 1.78 |
| ZIJMY Zijin Mining Group Co Ltd ADR |
- -% | 36.42 | 15.04 | 17.39 | 0.15 | 2.83 | 0.20 | 1.78 |
| AEM Agnico Eagle Mines Limited |
-0.43 0.55% | 77.73 | 42.69 | 15.65 | 5.47 | 2.04 | 5.49 | 12.90 |
Data Powered by EOD Historical Data (“EODHD”).
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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