Is Buying TIM Participações S.A. (TSU) Here a Winning Strategy? The Stock Formed Wedge Up Chart Pattern

March 19, 2018 - By Marie Mckinney

The stock of TIM Participações S.A. (TSU) formed an up wedge with $23.55 target or 7.00 % above today’s $22.01 share price. The 6 months wedge indicates low risk for the $10.66 billion company. If the $23.55 price target is reached, the company will be worth $746.48 million more.
Rising wedges, especially for downward breakouts are tricky moments to trade. Investors must be aware that the break even failure rate for up or down breakouts is: 8% and 24%. The average rise is 28% and the decline is 14%. Wedges has high throwback and pullback rate: 73%, 63% and the percent of wedges meeting target is not more than 50%.

The stock decreased 1.03% or $0.23 during the last trading session, reaching $22.01. About 15,384 shares traded. TIM Participações S.A. (NYSE:TSU) has risen 48.97% since March 19, 2017 and is uptrending. It has outperformed by 32.27% the S&P500.

Analysts await TIM Participações S.A. (NYSE:TSU) to report earnings on April, 26. They expect $0.16 earnings per share, up 100.00 % or $0.08 from last year’s $0.08 per share. TSU’s profit will be $77.52M for 34.39 P/E if the $0.16 EPS becomes a reality. After $0.38 actual earnings per share reported by TIM Participações S.A. for the previous quarter, Wall Street now forecasts -57.89 % negative EPS growth.

TIM Participações S.A. (NYSE:TSU) Ratings Coverage

Among 7 analysts covering TIM Participacoes (NYSE:TSU), 4 have Buy rating, 1 Sell and 2 Hold. Therefore 57% are positive. TIM Participacoes had 27 analyst reports since August 5, 2015 according to SRatingsIntel. RBC Capital Markets maintained TIM Participações S.A. (NYSE:TSU) on Tuesday, October 3 with “Hold” rating. Bank of America upgraded TIM Participações S.A. (NYSE:TSU) on Tuesday, July 26 to “Buy” rating. The rating was downgraded by Goldman Sachs on Friday, December 18 to “Sell”. The stock of TIM Participações S.A. (NYSE:TSU) has “Hold” rating given on Thursday, November 30 by RBC Capital Markets. The stock of TIM Participações S.A. (NYSE:TSU) has “Equalweight” rating given on Wednesday, July 27 by Barclays Capital. The rating was maintained by RBC Capital Markets on Friday, March 9 with “Hold”. JP Morgan downgraded the stock to “Neutral” rating in Wednesday, August 5 report. The company was maintained on Monday, February 5 by Scotia Capital. JP Morgan upgraded the shares of TSU in report on Friday, May 26 to “Overweight” rating. The company was downgraded on Tuesday, October 6 by Barclays Capital.

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