EOH HOLD­INGS

Finweek English Edition - - INVESTMENT -

HOLD Keith McLach­lan from Thebe Stock­brok i ng has warned that while EOH has con­tin­ued to be a strong per­former in the sec­tor, in­vestors should be wary of cer­tain as­pects in the busi­ness. He points out that while EOH has made progress win­ning a num­ber of ma­jor pub­lic-sec­tor deals, this should be seen in the con­text of com­peti­tor Gijima ex­it­ing the sec­tor as well. McLach­lan ad­vised via the Small­caps.co.za web­site: “While EOH’s strong growth has de­manded a re-rat­ing in its mul­ti­ple in the mar­ket, it re­mains a fact that a sig­nif icant level of the Group’s pre­mium to the in­dex is wor­ry­ing and pro­vides ma­te­rial down­side risk from any missed mar­ket ex­pec­ta­tions in fu­ture re­sults.”

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