{"id":330678,"date":"2024-11-29T08:01:23","date_gmt":"2024-11-29T00:01:23","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=330678"},"modified":"2024-11-29T08:01:25","modified_gmt":"2024-11-29T00:01:25","slug":"stock-in-focus-bloomberry-resorts-corp-bloom-29-nov-2024-by-ap-securities","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-bloomberry-resorts-corp-bloom-29-nov-2024-by-ap-securities\/","title":{"rendered":"Stock in Focus: Bloomberry Resorts Corp. (BLOOM) – 29 Nov 2024 by AP Securities"},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>BLOOM<\/td><\/tr>
Company Name<\/strong><\/td>Bloomberry Resorts Corp.<\/td><\/tr>
Broker<\/strong><\/td>AP Securities<\/td><\/tr>
Opinion Issued on<\/strong><\/td>29 Nov 2024<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 10.40<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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Despite the somewhat weak outlook for BLOOM for the remainder of this year and for all of next year, we believe that the stock has now become too cheap to ignore. Even the technicals of its chart points to a potential entry point, with an oversold RSI of 18.8 and this indicator forming a bullish divergence which indicates a high probability of reversal. <\/p>\n\n\n\n

Back on the fundamental side of things, we believe a reversion to the mean P\/E ratio may take some time to materialize but it eventually will within the next 52 weeks. With this in mind, we reinstate our BUY rating on BLOOM with a downward revised Target Price of P10.40.<\/p>\n\n\n\n

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Analysis and Opinion<\/h2>\n\n\n\n

Sell-off might have been overdone<\/strong><\/p>\n\n\n\n

BLOOM has lost 27.0% of its market value since the shock miss in its 3rd quarter (Q3) earnings, with consensus EPS estimate and target price getting downgraded by upwards of 10% since then. We recently downgraded the stock from BUY to HOLD in anticipation of this after the company reported a net loss for the quarter due to continued weakness in Entertainment City and additional costs from Solaire North.<\/p>\n\n\n\n

However, we now have reason to believe that the selling might have been overdone. The stock closed at a fresh 52-week low of P5.63 yesterday, pricing it at 6.5x FY25E P\/E (the lowest since the March 2020 lockdowns) based on the downward revised EPS estimate of P0.8630 per share. This is well below the 5Y average P\/E ratio of 12.1x and even lower than the -1SD P\/E of 7.6x.<\/p>\n\n\n\n

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Check how many brokers recommend this stock<\/h2>\n\n\n\n
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All Stock Rankings<\/a><\/blockquote>