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: