Chantal Marx, head of investment research and content at FNB Wealth & Investments
BUY: Naspers
Naspers’s share price has come down meaningfully from its last peak (R1,306 on October 3 2025). This has been a function of softness in the Tencent share price, rand strength and a recent widening of the discount it trades at relative to its NAV.
Recent results were strong and we expect continued improvement in profitability in Prosus’s consolidated businesses, additional merger & acquisition activity to drive growth, and corporate activity to unlock value in the short to medium term. Disciplined capital allocation and a strong balance sheet position the group well to execute on its strategy. So we expect the discount to NAV to narrow as the year progresses. We are also positive on Tencent thanks to its gaming dominance and strong capital returns, and we expect a fresh rerating in the share price at some point which should offer additional support.
Technically, the stock has staged a moderate pullback. While downward momentum may persist in the short term, we will be comfortable taking a position in the medium- to longer-term context.
SELL: Coronation Fund Managers
Coronation’s share price has had an exceptional run since last April. At its 2025 low, the stock was trading at R33.40. Since then, the share price is up 55% and 72% on a total return basis, benefiting from a strong run in risk assets.
In November, the company released decent underlying results for the year to end-September, demonstrating good support from strong markets while net outflows continued to moderate. At the time, however, management’s assessment of this moderation was measured: it said it does not expect a rapid improvement in industry dynamics “in the foreseeable future”. In January, the share price took another sharp leg higher after the company reported that its total assets under management (AUM) as of end-December were up 3.3% quarter on quarter. This was a function of still strong markets but implied that outflows persisted (which the market seemed to shrug off). The stock is now trading on a price-to-AUM that looks slightly expensive relative to history.
We anticipate a shallow pullback in the near term (to around R49.90) in the absence of any fresh supportive fundamental factors.
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