|Bid||88.75 x 1200|
|Ask||88.93 x 4000|
|Day's Range||88.35 - 91.82|
|52 Week Range||58.60 - 95.14|
|Beta (3Y Monthly)||1.30|
|PE Ratio (TTM)||9.63|
|Earnings Date||Oct 21, 2019 - Oct 25, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||97.13|
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
(Bloomberg) -- A new South African law bringing relief to over-indebted, lower-income consumers is unlikely to deal as severe a blow to banks and retailers that some investors may fear, according to Bank of America Merrill Lynch analysts.Describing the legislation as “a bogey, but no cause for alarm,” BofAML analysts including Michael Jacks said in a note that retailers have already provisioned for the projected impact on their bad debt. Banks would typically classify debt that qualifies under the new law under impairments, mitigating its effects. Legal challenges from creditors are likely, while the national credit body will need to add operating capacity, slowing its implementation.Retailers with higher proportions of customers using credit may feel the effects in slower growth, with the targeted income groups accounting for an average of 40% of shoppers at the Foschini Group Ltd., Truworths International Ltd., and Mr Price Group Ltd. A 5% debtors’ book write off would have a 2% negative earnings-per-share impact for Foschini and Truworths and 1% for Mr Price due to lost interest income, while damping future credit growth.“Credit accounts for 70% of Truworths Africa sales, 45% at Foschini and 18% at Mr Price,” BofAML said, adding that “both Foschini and Truworths have already made provisions for this bill in their provisions for bad debts in their last set of results.”Among banks, Capitec Bank Holdings Ltd. has the highest exposure to the targeted income group and one-time impairments could erase 13% of EPS and 4.7% of recurring profits. However, Capitec management has “been actively reducing exposure to affected loans and note conservative provisioning relative to write-off experience, which should temper this outcome.”Absa Group Ltd., the second-most exposed lender, could see a one-time blow to EPS of 9.8%, while FirstRand Ltd. could lose 8.6%, Standard Bank Group Ltd. 7.4% and Nedbank Group Ltd. 6.5%. As unsecured loans account for just 8% of total unsecured advances by banks and only 1% of total bank advances, the law is likely to have a muted impact on South African economic growth, they said.To contact the reporter on this story: Adelaide Changole in Nairobi at email@example.comTo contact the editors responsible for this story: Blaise Robinson at firstname.lastname@example.org, John Viljoen, Jon MenonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
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(Bloomberg) -- Top South African businessmen called upon to help save ailing state-owned companies are abandoning their posts, frustrated by indecision and political interference.Post Office Chief Executive Officer Mark Barnes, a former investment banker, on Thursday became the latest chief executive officer to quit. His announcement came after former banking executive Phakamani Hadebe left power utility Eskom Holdings SOC Ltd. and ex-Vodacom executive Vuyani Jarana resigned from South African Airways last month.The departures highlight the quandary confronting South African President Cyril Ramaphosa. His plans to revive the country’s faltering economy are floundering because of infighting in the ruling party and legal challenges that are undermining his authority.“It’s become increasingly obvious to private-sector talent that there is too much micro-management going on and too much political balancing and interference, which blocks decision-making,” said Peter Attard Montalto, the head of capital markets research at research company Intellidex. “Ultimately it means if all this plays out that talent levels decline.”The walk-out of top talent has forced the government to often appoint placeholder executives. Four critical state institutions -- Eskom, transport and logistics company Transnet SOC Ltd., South African Airways and state pension-fund manager the Public Investment Corp. -- all have acting CEOs.The circumstances under which executives have departed various entities were decidedly different, said Adrian Lackay, a spokesman for the Public Enterprises Ministry, which oversees the biggest state companies, including Eskom and SAA. The government will prioritize strengthening and reconfiguring their boards, and vacant CEO posts will be filled as soon as possible, he said.It’s not a wholesale exit. Business executives like Rothschild & Co. Chairman Martin Kingston and former Absa Group Ltd. CEO Maria Ramos are helping out at South African Airways and the PIC respectively.In order to attract more talent from the private sector, the government is going to have to address key issues such as separating the roles between government boards and executives, according to Cas Coovadia, managing director of the Banking Association of South Africa. The organizations’ mandates also need to be clarified, he said.“To me this is the elephant in the room,” Coovadia said. “If you put an executive in place to manage an organization that has virtually no possibility of viability the executives will get frustrated and leave. A very tough discussion needs to happen on which are strategic SOEs and which have the possibility of becoming financially viable.\--With assistance from Prinesha Naidoo, Gem Atkinson and Mike Cohen.To contact the reporters on this story: Loni Prinsloo in Johannesburg at email@example.com;Roxanne Henderson in Johannesburg at firstname.lastname@example.orgTo contact the editors responsible for this story: Rebecca Penty at email@example.com, Paul Richardson, Rene VollgraaffFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
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