It’s always tough to say but initial signs are encouraging…and it looks like City Union Bank stock can surprise on the upside
Have a look at the daily chart
As you can see in the chart above – the stock in last one week has sharply rallied to new 2012 high breaking out above 50.1 on above average volumes. It came on back of the the news that the company is going to consider augmentation of capital through QIP.
Yesterday, stock has pulled back to the breakout point and one can assume the stock will take support and move higher in days to come.
The stock looks interesting on the weekly chart too
The stock has been trying to break past 52.5 on weekly chart since October 2010 and hence any breakout on weekly chart will only confirm the breakout.
There are many buy reports on the stock…
Fundamentally speaking – Dolat Capital has come out with buy report and target price of Rs. 70 on the stock.
Anand Rathi has come out with buy report and price target of 68 on the stock. This is what they have to say – City Union Bank’s (CUB) prudent loan growth, best-in-class
productivity and superior asset quality are likely, in our view, to drive profitability and sustain an RoA of 1.7% over FY12-14.
Elara Securities came out with buy report and price target of Rs. 64 on the stock on back of Strong business growth, Impeccable asset quality and attractive Valuations.
What does this all mean?
City Union Bank is the stock to keep an eye on for big bullish move if it sustains above 50.1 over next few days. Please do your own due diligence before trading/investment