Finweek English Edition - - INVESTMENT -

HOLD Thebe Stock­broking small-caps an­a­lyst Keith McLach­lan says that he still favours this small IT se­cu­rity player. McLach­lan low­ered his ‘fair value’ val­u­a­tion on ISA from 74c/share to 57c/ share. He told clients: “ISA re­mains our pre­ferred tech­nol­ogy counter on the JSE with ro­bust, cash-gen­er­a­tive re­cur­ring rev­enues driv­ing a sus­tain­able div­i­dend yield. The chal­lenges are ISA’s rel­a­tively small size, its con­cen­trated ex­po­sure to niche ICT se­cu­rity spend and the illiq­uid­ity of its shares. The lat­ter re­ally makes it an un­re­al­is­tic in­vestable op­tion for larger in­vestors.”

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