In a report released today, Giles Thorne from Jefferies upgraded Prosus to a Buy, with a price target of €65.50.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Giles Thorne has given his Buy rating due to a combination of factors that highlight Prosus’s strategic transformation and potential for growth. The appointment of Fabricio Bloisi as CEO marked a significant shift in the company’s direction towards becoming an investor-owner-operator, which is expected to unlock greater value from its technology investments. This strategic pivot, known as the ‘Ecosystem Strategy,’ aims to turn the historical discount on Prosus’s assets into a premium by enhancing the value of investments within the Prosus ecosystem.
Thorne believes that the market will gradually recognize the value of Prosus’s assets, particularly in the Latam and Europe ecosystems, and its foundational assets in food delivery. The anticipated full takeover of Delivery Hero is seen as a pivotal move that will position Prosus as a major player in the global food delivery sector. Additionally, the company’s proactive management of its asset portfolio and potential buybacks of its equity at a premium further support the Buy rating. The reduced target price discount to NAV from 35% to 10% reflects confidence in Prosus’s strategic direction and management’s ability to deliver on its ambitious goals.
According to TipRanks, Thorne is ranked #4389 out of 9952 analysts.
In another report released on August 21, Citi also maintained a Buy rating on the stock with a €57.00 price target.