small-cap

One REIT Stock Trading Near Resistance Levels - ARF

Mar 22, 2024 | Team Kalkine
One REIT Stock Trading Near Resistance Levels - ARF
Image source: shutterstock

ARF:ASX
Investment Type
Small-Cap
Risk Level
Action
Rec. Price (AU$)

This report is an updated version of the report published on 22 March 2024 at 4:12 PM AEDT.

Arena REIT (ASX: ARF)

Arena REIT is a property group operating as the developer, owner, and manager of social infrastructure properties across Australia. The company has leased social infrastructure properties under its portfolio to a diversified tenant base in the childcare and healthcare sectors.

Recommendation Rationale – SELL at AUD 3.895

  • Profit Booking: HLO has nearly touched Resistance 2 recommended on 15 February 2024; and thus, offering a profit booking opportunity.
  • Overvalued Multiples: On a forward 12-month basis, key trading multiples (EV/Sales, EV/EBITDA, Price/Earnings, Price/Cash Flow, and Price/Book) are higher than median of the Real Estate sector.
  • Net Profit Decline: During H1 FY24, statutory net profit declined by 59% year-over-year.
  • NAV Position: Net Asset Value stood at AU$3.38 at 31 December 2023, reflecting 1% decline on 30 June 2023.

ARF Daily Chart

Considering that the stock price has touched its R2 level, share price movement, current trading levels and risks associated, it is prudent to book profits at the current levels. Hence, a ‘Sell’ recommendation is given on the stock at the current price of AUD 3.895 (as of 22 March 2024, at 2:20 PM AEDT).

Note: This report may be updated with details around fundamental and technical analysis, price/ chart in due course, as appropriate.

Note 1: Past performance is neither an indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 22 March 2024. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and uptrend may take a pause due to profit booking or selling interest.

Stop-loss: In general, it is a level to protect further losses in case of any unfavourable movement in the stock prices.


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Past performance is not a reliable indicator of future performance.