BrunoBoni

BUY EZTC3 aiming pre-COVID levels

Long
BMFBOVESPA:EZTC3   EZTEC ON NM
Very strong fundamentals. Home builder focused on resilient demand: premium real estate EV/EBTIDA <10, P/B <1, PE <9. Negative net debt (>R$1 billion net cash)!!! Excellent track record operating in unstable economy with ultra conservative cash/ leverage management. In spite of conservative approach to business, the company has a very solid growth history since the IPO in 2007.

Technicals: correction of 2016-2020 bull run seems to be over (or nearly so). Diverging MACD , RSI and OBV on touch of 2016-2020 trendline. Very attractive risk reward ratio on trade.