“TPG shares currently look cheap at these levels,” Michael said.

“We also expect a more sustainable earnings recovery from here which should see a re-rating in the share price.

“The chart is also indicating that current levels are a buying opportunity.

“After easing back across October to early December, TPG then spent the following few weeks forming a base just under $6.

“The range also started to tighten up.

“A tightening trading range usually precedes a strong move in one direction or the other.

“Last week we saw it break higher on strong volume.

“This indicates that a low is in place and the share price is likely to follow through to the upside from here.

“I expect a recovery to at least $7 in the short term,” Michael concluded.

TPG Telecom (TPG)

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