Consistent Increase in Service Credits May Support Building and Transport Service Industries

Company Overview: Johns Lyng Group Limited (ASX: JLG) is an Australia-based integrated building services company that operates in building and restoration services across Australia and the United States. Alliance Aviation Services Limited (ASX: AQZ) is an Australia-based provider of charter, contract & allied aviation, and maintenance services. The company is engaged in rendering contract air charter services, wet-leasing services, ad-hoc air charter services, regular passenger transport services and an array of allied aviation services. Kalkine’s Market Event Report covers the Investment Summary, Event Summary, Data Insights & Analysis, Key Financial Metrics, Risks, Outlook, Technical Analysis along with the Valuation, Target Price, and Recommendation on the stock.

Investment Summary

Event Highlights

Data Insights and Analysis

Key Drivers versus Key Challenges

Considering the International Trade Statistics, two ASX stocks are identified to showcase the momentum.

(1) Johns Lyng Group Limited (ASX: JLG)

(Recommendation: ‘Speculative Buy’ at AUD 5.170, Potential Upside: Low Double-Digit)

(M-cap: AUD 1.42bn, Annual Dividend Yield^: 2.08%)

Company Overview: JLG is an Australia-based integrated building services company that operates in building and restoration services across Australia and the United States.

The stock has witnessed a dip of 24.42% in last three month, and over the last six months, it has dipped by ~10.71%. The stock has a 52-week low and 52-week high of AUD 4.940 and AUD 7.990, respectively and is currently trading below the 52-week high-low average. JLG was last covered in a report dated ’21 July 2023’.

( 2) Alliance Aviation Services Limited (ASX: AQZ)

(Recommendation: ‘Hold’ at AUD 3.270, Potential Upside: Low Double-Digit)

(M-cap: AUD 538.46mn)

Company Overview: AQZ is an Australia-based provider of charter, contract & allied aviation, and maintenance services. The company is engaged in rendering contract air charter services, wet-leasing services, ad-hoc air charter services, regular passenger transport services and an array of allied aviation services.

The stock has gained ~18.05% in last one month, and over the last three months, it has surged by ~5.48%. The stock has a 52-week low and 52-week high of AUD 2.640 and AUD 3.670, respectively and is currently trading above the 52-week high-low average. AQZ was last covered in a report dated ’16 June 2023’.

Comparative Price Chart

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

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 7 August 2023. 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 a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.

Disclaimer

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