Since our technical buy recommendation on the 19th Nov 2013, PIE has surpassed our earlier technical target price of RM7.56 (+21% or RM1.31) to close at RM7.60 yesterday. The impressive 3Q13 earnings performance and expectations that the company will benefit from the recovering global tech cycle have indeed caught investors’ interest, which propelled the stock to new highs. Even with the stellar gains, the technical picture has yet to show any signs of strain. In fact, a new “Bullish Pennant” formation can also be redrawn to project a higher measurement TP of RM8.60 while the momentum indicators are firmly biased to the upside. This leads us to believe that it may be premature to lock in gains at this juncture. As such, we raise our “take profit” level to RM8.57 (representing 3 bids below the measurement TP). At the same time, we are also adjusting our stop-loss level from RM 5.80 to RM7.18.

 

Source: Kenanga