Prosus is the international internet assets division of Naspers. It is the largest listed consumer internet company in Europe and is one of the largest technology investors in the world, operating across a variety of platforms and geographies. Among its largest investments are Tencent (28.9% stake), OLX, PayU, Delivery Hero (24.5% owned), and C-Trip (6% owned).
Technically, a price above key support makes for an attractive investment opportunity (see the black support trendline on the main chart and the insert).
Support levels are based on lows where buyers have previously entered the market. A share price above key support indicates that there is sustained demand for the share at that price level, and that buyers are willing to purchase the share if it dips towards that level. A strong level of support may help prevent a further decline in the share price.
According to the RSI (Relative Strength Index), the stock will be overbought at ~R1 610. This classifies our profit target of R1 606 as realistic.
We suggest a medium capital at-risk allocation to this trade.
Share Information
| Share code | PRX |
|---|---|
| Industry | Media |
| Market capatalisation (ZAR) | 2786.64 billion |
| One year total return | 80.48% |
| Return year-to-date | 18.19% |
| Current price(ZAR) | 1391.98 |
| 52 weeek high(ZAR) | 1488.20 |
| 52 week low(ZAR) | 687.72 |
| Financial year end | March |
| Closing paragraph | The share price has been trading sideways following a sharp rebound over the last year or so. Expect moderate to high volatility in the price. |
Consensus Expectations (Bloomberg)
| FY22 | FY23E | FY24E | FY25E | |
|---|---|---|---|---|
| Headline Earnings per Share (USD) | 1.93 | 2.12 | 3.68 | 4.83 |
| Growth (%) | 10.07 | 73.45 | 31.16 | |
| Dividend Per Share (USD) | 0.14 | 0.11 | 0.14 | 0.12 |
| Growth (%) | -21.43 | 23.42 | -12.05 | |
| Forward PE (times) | 35.79 | 20.63 | 15.73 | |
| Forward Dividend Yield (%) | 0.15 | 0.19 | 0.16 | |
| Closing paragraph | Earnings growth expectations remain attractive over the medium term. | |||
Buy or Sell Rationale
Technical Analysis :
Long term fundamental view:
| Share Name and position | TFG - BUY (Continue to hold) | BAW - BUY (Continue to hold) | MNP - BUY (Continue to hold) |
|---|---|---|---|
| Entry | 83.54 | 85.56 | 284.46 |
| Current | 93.60 | 90.28 | 290.45 |
| Movement | 12% | 5.5% | 2.1% |
| Summary text |
The share is still trading below its 200-day simple moving average. However, fading downside price momentum supports the predominant trend.
Our take profit target is set at R132, with a trailing stop-loss at R72.15. Time exit: 8 July 2023. |
The share price crossed just above its 200-day simple moving average. Upside price momentum supports the predominant trend.
Our take profit target remains at R104, with a trailing stop-loss at R82.65. Time exit: 3 July 2023. |
The price remains close to key support and is testing its 200-day simple moving average. Fading downside price momentum supports the bullish trend.
Take profit target set at R328, with a trailing stop-loss at R272. Time exit: 22 May 2023. |
| Share Name and position | OMU - BUY (Continue to hold) | LHC - BUY (Continue to hold) | VOD - BUY (Continue to hold) |
|---|---|---|---|
| Entry | 11.67 | 19.30 | 126.50 |
| Current | 11.89 | 19.43 | 126.13 |
| Movement | 1.9% | 0.7% | -0.3% |
| Summary text |
The price is counter-testing a bearish trend and remains above its 200-day simple moving average. Upside price momentum supports the bullish trend.
Take profit target is R16, with a trailing stop-loss at R10. Time exit: 17 November 2023. |
The price is worth monitoring as it is still near a major support level. The share is trading above its 200-day simple moving average.
Take profit target set at R22.20, with a trailing stop-loss at R18.20. Time exit: 26 June 2023. |
The price is hovering near a significant support level and is testing its 200-day simple moving average.
Take profit target set at R144, with a trailing stop-loss at R120. Time exit: 1 May 2023. |
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