Section 1:

1.1 Company Overview and Fundamentals

Magic Software Enterprises Ltd. (NASDAQ: MGIC) is a supplier of vertical software solutions, platforms for business process integration, and related professional services. Information technology (IT) outsourcing services are offered by the company.

Kalkine’s US Daily Report covers the Company Overview, Summary Table, Key positives & negatives, Business updates and insights into company recent financial results, Key Risks & Outlook, Price performance and technical summary, Target Price, and Recommendation on the stock.

Stock Performance:

• The stock has corrected by 10.97% in the last month as well as 15.77% in the last three months.
• The stock is leaning towards its lower band of its 52-week range of USD 20.24 and 52-week low price of USD 11.20. Post the announcement of Q1FY23 results the stock has corrected by 21.75%. Currently, the price is near its 52-week low, if the price sustains above USD 10.00 to USD 11.00, there is an expectations of a reversal towards the upper directions.
• The price is currently trading below its long-term (200-day) SMA and its short-term (50-day) SMA , with the current RSI of 42.99.

1.2 The Key Positives, Negatives, and Investment summary

Section 2: Magic Software Enterprises Ltd. (“Buy” at the current market price of USD 12.34, as of June 07, 2023, at 09:40 am PDT)

2.1 Company Details

2.2 Valuation and Technical Guidance

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

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 levels is June 07, 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.

Note 4: The report publishing date is as per the Pacific Time Zone.

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 against further losses in case of unfavorable movement in the stock prices.