Finweek English Edition - - INVESTMENT -

Re­nais­sance Cap­i­tal main­tained its rat­ing on the me­dia group with a 12-month price tar­get of R695/ share. This is largely driven by the val­u­a­tion at­tached to Chi­nese as­set Ten­cent, which Re­nais­sance says makes up 61% of its sum-of-the-parts (SOTP) val­u­a­tion. An­a­lyst David Fer­gu­son wrote: “Although shares in Ten­cent have seen some soft­ness over the past week, given the like­li­hood of earn­ings down­grades, we think fur­ther short-term profit-tak­ing for both Ten­cent and Naspers is pos­si­ble. In the medium term, how­ever, we re­main pos­i­tive on Ten­cent’s (and there­fore Naspers’s in­vest­ment case) given its po­ten­tial to mon­e­tise its mo­bile plat­form and other ar­eas such as ad­ver­tis­ing and ecom­merce.”

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