Finweek English Edition - - INVESTMENT -


HOLD An­chor Cap­i­tal says that this JSE-l i sted tech­nolog y play may be en­ter­ing value ter­ri­tory af­ter a re­cent sell-off. The as­set man­ager said that if the share price re­cov­ered, the counter would still only be trad­ing on a 12 times earn­ings mul­ti­ple in rand terms and the com­pany had re­ceived pos­i­tive feed­back fol­low­ing a meet­ing with man­age­ment.

The as­set man­ager told cl ients: “With re­gard to the busi­ness in gen­era l , we l i ked what t he com­pany said about the de­vel­op­ments and the prospects. It seems to be do­ing a lot to take ad­van­tage of new tech­nolo­gies and t he move to­wards mo­bile de­vices. It has also devel­oped of­fer­ings around the cloud. The soft­ware por­tion of t he busi­ness, which i s grow­ing through the cloud of­fer­ings, ac­counts for 20% of the to­tal busi­ness and pro­vides higher mar­gins than the more t ra­di­tional /non- dig­i­tal of­fer­ings, with lower risk and a re­cur­ring in­come stream.” the com­pany’s un­de­mand­ing val­u­a­tion (for ward PE of 8.4 times) and sub­se­quent earn­ings growth (20% three­year CAGR) on our es­ti­mates.”


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