SuperGroup’s share price has returned to where it was beginning of 2015 and has been stuck in a range between R45 and R33. It has bottomed out around R33, half year results put it’s NAV at just below R29 growing at 16% (CAGR) over the past four years.
Earnings have increased by 9% (CAGR) and expectation is for that to continue. It’s on a forward PE of just 8.5 while it’s five-year average stands at 10.8 so it’s currently trading at a 27% discount.
A twelve-month target price of R42.50 implies 26.8% upside, with downside risk underpinned by the R28.90 NAV.
Buy SPG below R33.50 with a target of R42.50
The week ahead:
- Local Data: Unemployment (Quarterly) (26/03); Financial Statistics (Quarterly), PPI, Interest Rates (28/03)
- Results Due: MDI, ECS, ATL, JBL (26/03); ACG, APH (27/03); TBS, YRK, CPI (28/03); JSC, TLM, GEM, AHL, UCP, WEZ, CND, ELB, PMH, PEM (29/03)
- Ex Div (26/03): ATT, CLR, FFA, FFB, GND, GNDP, IMRP4, MMI. MRF, MSM, MTN, OMU, SCD, SUR, TEX, TPF