Research

BBRI: Looks Oversold, Tactical Rebound?

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Algo Research Team

Company | May 05, 2024 | Views: 1781

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Key Summary:

  • Buy the dip? Technical seems stretched
  • Worst monthly decline since 2020
  • Business fundamental deterioration

Since our research at the beginning of April, where we correctly predicted that the overall banks' earnings could miss estimates (read here: Seasonally Weak 2Q, Sell Banks), large-cap banking stocks have underperformed led by BBRI, which is down by -21%.


Specific to BBRI, we have actually been bearish on the stock from 4Q22 (read here: BBRI - A Sign Of Weakness In Income), with the thesis that its micro segment is deteriorating given low-income household unlikely to recover and inflation to erode purchasing power, causing stagflation.

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