IN­VESTEC LIMITED

Finweek English Edition - - INVESTMENT -

HOLD

HOLD Imara SP Reid has up­dated its call on the dual-listed bank­ing group and re­mains un­con­vinced about its prospects in the near-term. An­a­lyst Steve Mein­t­jes has in­di­cated he would con­sider buy­ing the share nearer R60 (cur­rently trad­ing north of R71/share). He told clients: “We don’t know ex­actly when In­vestec will get this help from mar­kets (not just to sur vive, of t hat there is no doubt, but to re­ally thrive) but it re­mains geared to ben­e­fit strongly when this hap­pens. In the mean­time it has suc­cess­fully bal­anced its busi­ness with al­most even con­tri­bu­tions from the cap­i­tal light ac­tiv­i­ties of man­ag­ing third-party as­sets and ad­vi­sory on the one hand, and cap­i­tal in­ten­sive busi­nesses of net in­ter­est, in­vest­ment and trad­ing on the other. More­over, re­cur­ring an­nu­ity in­come has av­er­aged 66% since 2008. There re­mains much work to be done, es­pe­cially re­gard­ing re­turns on eq­uity and achiev­ing crit­i­cal mass in Aus­tralia.”

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