Aeon Co (M) (AEON MK; RM8.00, Sell) - Coming to an end?

Stock Name: AEON
Company Name: AEON CO. (M) BHD

Research House: CIMB

Price Call: SELL

Target Price: 8.00

FY13P/E: N/A, P/BV: 2.3x

• The breakout run from the triangle pattern in December is likely at its tailend as the rally seems to be losing momentum. Prices could still push higher into the RM8.10-8.40 levels in the near term but the upside is likely capped.
• Technical weakness is starting to set in, calling for a more cautious approach.
• The potential upside compared to the downside risk is not favourable. Hence, we prefer to be more cautious and take some money off the table now. We think that the uptrend is over if prices fall below RM7.68 and the next downside target is RM6.80-7.00.

Aeon Company (M) Berhad operates a chain of superstores selling a broad range of goods including clothing, food, household goods, and other merchandise. The company also operates shopping centers.

Source: CIMB Trader AM - 27th Feb 2012