MTN just released a trading update for financial ended 31 December 2020.
- HEPS expected to increase by 30% - 50%
- EPS expected to increase by 0% - 10%
Even at the top of the range (534cps), results will still below Thomson Reuters consensus expectations of 583cps. MTN however adapted new accounting standard (IFRS 16), which on a like-for-like basis with the old accounting standard (IAS 17), EPS would be between 558cps – 606cps. This mean they are very much in-line with market expectations.
Think the market is going to like this tomorrow
Technically MTN found itself in decreasing parallel channel since its highs in August last year (2019). We however see the 8-day Moving Average (EMA) getting mighty close to break above the 21-day EMA. This will be a very positive short-term signal, bringing next resistance at the 50-day EMA (R84.83). Should we break and close above the 50-day EMA, could see MTN test the very important top of the parallel channel at R87.50.
Short-term target is R92.80, with Thompson Reuters Consensus target price still seeing the price as high as R108.78.
- HEPS expected to increase by 30% - 50%
- EPS expected to increase by 0% - 10%
Even at the top of the range (534cps), results will still below Thomson Reuters consensus expectations of 583cps. MTN however adapted new accounting standard (IFRS 16), which on a like-for-like basis with the old accounting standard (IAS 17), EPS would be between 558cps – 606cps. This mean they are very much in-line with market expectations.
Think the market is going to like this tomorrow
Technically MTN found itself in decreasing parallel channel since its highs in August last year (2019). We however see the 8-day Moving Average (EMA) getting mighty close to break above the 21-day EMA. This will be a very positive short-term signal, bringing next resistance at the 50-day EMA (R84.83). Should we break and close above the 50-day EMA, could see MTN test the very important top of the parallel channel at R87.50.
Short-term target is R92.80, with Thompson Reuters Consensus target price still seeing the price as high as R108.78.
Comment:
Both R84.83 & R87.50 breached. Approaching 1st target.