Business18.12.2016

MTN is a good buy – Analysts

MTN shares graph

MTN has experienced several problems over the last 18 months, which saw the company’s share price plummet from R240 in April 2015 to R111 in early December.

Losing half of your money in less than two years is painful and it is not surprising that investors are dumping their MTN shares.

This decision, however, could be a mistake, said Ashburton Investments fund manager Wayne McCurrie.

Speaking on Business Day TV, McCurrie said the only price to consider with a share is the current price. “Do not consider the price you paid for the share,” he said.

McCurrie said investors should only look at whether the share is cheap or expensive today. Based on this valuation, the decision should be made to buy it, keep it, or sell it.

Using this measure, MTN is not expensive and therefore a good share to hold or buy, he said.

New executive team

MTN has overhauled its senior executive team, which McCurrie said bodes well for the company’s future.

“They are sweeping the place clean. They are going to do things differently,” said McCurrie.

He said MTN also has a solid business. “They may have made mistakes, but they have a good business.”

Sasfin Securities’ David Shapiro agreed with McCurrie and said it is currently one of this top stock picks.

The chart below shows the MTN share price over the last 18 months.

MTN-share-price

Now read: MTN announces new senior appointments

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