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ABG: Larger Domestic Stake Will Support Margins And Measured Shareholder Returns

Pan-African Integration And Digital Transformation Will Unlock Potential

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ABG
AnalystConsensusTarget
Not Invested
Published 09 Feb 2025

Update shared on 10 Dec 2025

Fair value Increased 3.64%
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1Y
15.8%
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5.2%

Analysts have raised their price target for Absa Group to R243.84 from R235.28, citing slightly stronger projected revenue growth, modestly higher expected profit margins and a small uplift in future valuation multiples.

What's in the News

  • Public Investment Corporation Limited completed the acquisition of an additional minority stake in Absa Group Limited on December 10, 2025, increasing its shareholding to 15.32 percent (Key Developments)
  • The larger strategic stake held by Public Investment Corporation Limited is expected to strengthen Absa Group's local institutional shareholder base and potentially enhance long term governance stability (Key Developments)
  • Market observers note that the heightened ownership by a major domestic investor may influence Absa Group's capital allocation priorities and future engagement with regulators and policymakers (Key Developments)

Valuation Changes

  • Fair Value Estimate increased slightly from ZAR 235.28 to ZAR 243.84 per share, reflecting a modestly higher intrinsic valuation.
  • Discount Rate edged down marginally from 19.06 percent to 19.05 percent, indicating a very small reduction in the assumed risk profile.
  • Revenue Growth nudged up slightly from 10.73 percent to 10.76 percent, pointing to a modestly stronger top line outlook.
  • Net Profit Margin improved slightly from 23.69 percent to 23.91 percent, implying a small uplift in expected profitability.
  • Future P/E increased modestly from 10.28x to 10.55x, suggesting a mild re-rating in forward earnings multiples.

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Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.