Electronic design automation software (EDA) business ALU has managed to bounce 18% from its panic June low but like other quality tech stocks it remains significantly below its late 2021 high. We like this quality business which already pays a ~1.5% fully franked yield but it’s priced for growth trading on an Est P/E valuation of 53.7x for 2022 making it likely that sellers will re-emerge in the low to mid $30 region.
- MM is considering taking a profit on our ALU position above $30.
MM is bullish ALU short-term targeting the $30 / 35 region
Add To Hit List
