Financials
Paul Hollingworth’s Buy call (July 2021) has yielded a return of ~60% but given fundamental and technical momentum remain positive (PH Score™ 8.0), Paul sees no reason to alter his constructive stance. Investors should focus on medium-term profitability targets driven by positive changes in efficiency metrics which would make current valuations attractive. If the mid-point of the ROE target of 12-16% is met, the current PBV of 0.83x is too low given the Earnings Yield would be 17% (vs. 12.2% currently), while also remembering that Standard Bank Group acquired Liberty for >1x BV last year.
Edition: 143
- 02 September, 2022