Stockpicks

Steven Schultz from Momentum chose

Pick n Pay

“I’m going for Pick n Pay. It has de-rated quite sharply since 2018 and nearly halved in price over the past two years. It also cut dividends to preserve cash, which I suppose isn’t too unique in this environment, but we expect earnings to bottom out this year before rebounding fairly slowly. Our 2023 target price is around R70 versus today’s R43 for the share, which implies about a 23% annualised return over the next three years.”

Jean Pierre

Verster from Protea Capital Management chose Match Group

“My pick is Match Group. They own Tinder and I think the lockdown has shown us that people want human connection. The company is increasingly adding more features, and they charge if you want more features. People need that human connection so they’re willing to pay, and therefore I think for the long term Tinder is a network app that’s a winnertake-all situation.”

Andile Buthelezi

from

Sentio Capital chose MTN

“I’m going for MTN. On a number of different matrices the stock is looking undervalued, especially compared to their peers like Vodacom. Yes, they didn’t pay an interim dividend, but indications are that they will probably pay an end-of-year dividend — so on that basis it’s trading on a 6.5% dividend yield.”