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FSR: Improved Profitability And Lower Risk Will Support Further Share Upside

FSR: Stable Discount Rate And Political Stability Will Drive Future Market Confidence

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FSR
AnalystConsensusTarget
Not Invested
Published 09 Mar 2025

Update shared on 16 Dec 2025

Fair value Increased 2.27%
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AnalystConsensusTarget's Fair Value
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1Y
15.4%
7D
2.9%

Analysts have nudged their price target for FirstRand higher by approximately R2.20 to around R99.20, citing slightly faster expected revenue growth, a modestly improved profit margin, and a marginally lower discount rate that supports a richer, but still reasonable, future P E multiple.

What's in the News

  • Shareholders approved the appointment of KPMG Inc. as joint external auditor, replacing PricewaterhouseCoopers Inc., for the financial year ending 30 June 2026, effective 1 July 2025 (AGM resolution; key developments)

Valuation Changes

  • Fair Value Estimate has risen slightly from around ZAR 97.02 to approximately ZAR 99.22 per share, reflecting a modest uplift in intrinsic value.
  • The Discount Rate edged down marginally from about 17.82 percent to roughly 17.79 percent, supporting a slightly higher present value of future cash flows.
  • Revenue Growth increased fractionally from an expected 11.95 percent to about 12.01 percent, implying a small upgrade to top line growth assumptions.
  • Net Profit Margin improved slightly from roughly 32.13 percent to around 32.18 percent, indicating a modestly more optimistic view on profitability.
  • The Future P/E Multiple has risen moderately from about 14.71x to approximately 14.98x, signalling a somewhat richer valuation outlook.

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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.