PureTech Health PLC (LSE: PRTC)

PureTech Health PLC (LON: PRTC) is a FTSE 250 index listed Company, which develops and commercialise medicines related to gastrointestinal diseases, intractable cancers, central nervous system disorders, lymphatic, and immunological diseases.

As per the previous recommendation on PRTC as on 27 October 2022, a ‘Speculative Buy’ rating on the stock at GBX 237.50 was given, and noted below are the details of support/ resistance provided in the previous report:

Investment Rationale – SELL at GBX 279.00

• Profit Booking: PRTC’s stock price has breached the R2 level provided in the last report, and it is presenting a profit booking opportunity.
• Continued Losses: PRTC reported an operating loss of GBP 101.19 million in H1 FY22, which increased significantly from H1 FY21.
• Technical Standpoint: The momentum oscillator, 14-day RSI (~73.41) has approached an overbought scenario. Thus, stock prices can face retracement in the short-term.
• Macroeconomic Uncertainties: The market sentiments can remain weak in the short-term due to 40-year high inflation, subdued consumer disposable income, geopolitical tensions, and political risks.

Share Price Chart  

(Source: Refinitiv, Analysis done by Kalkine Group)

Conclusion

Based on the notional gains, macroeconomic challenges, coupled with the unfavorable valuation conducted above, a "SELL" recommendation on PureTech Health PLC has been given at the current market price of GBX 279.00 (as of 23 November 2022, at 8:00 AM GMT).

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is 23 November 2022. 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.

Note 4: Target Price refers to a price level which the stock is expected to reach as per the relative valuation method and or technical analysis taking into consideration both short-term and long-term scenario.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the London Stock Exchange (LSE) and or REFINITIV. Typically, both sources (LSE and or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.’

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