Link Administration has attractive long-term fundamentals and is likely to deliver consistent high single digit earnings growth.
At present, the market is failing to look through the shorter-term impacts from changes to recent superannuation legislation. Should broad market weakness force a retest of the $7.00 price range, we’d consider this a good entry level.
Following the recent sell-off in Link, the stock has found support near the $7.00 range.
We feel Link provides good upside potential and recommend accumulating the stock with a stop-loss below $6.90.
Link Administration has been sold off following the Federal Budget measures aimed at increasing consolidation of inactive super accounts.
Although the announcement now creates a headwind for Link from FY20, we consider the stock “oversold”.
We suggest investors can accumulate Link at or near $7.00 support.
Our Algo Engine triggered a buy signal in Link Holdings (LNK) into yesterday’s ASX close at $8.00.
We consider LNK an attractive long-term investment opportunity and we’ve added the stock to our watch list.
Buy Link on a price retracement below $8.00
We recommend buying Link Holdings and placing a stop- loss below the recent $8.25 support level.
Link goes ex-div $0.07 on the 27th of March.