Update shared on 06 Nov 2025
Fair value Decreased 19%Thungela Resources: Analyst Price Target Update
Analysts have lowered their fair value estimate for Thungela Resources from R94.95 to R76.75. They cite revised expectations for revenue growth and profit margins as key factors in the adjustment.
What's in the News
- Mr. Moses Madondo will formally assume the role of Chief Executive Officer on 1 November 2025. This follows a structured transition with the outgoing CEO, Mr. July Ndlovu, who retires at the end of December 2025 (company statement).
- Thungela Resources issued earnings guidance for the six months ended June 30, 2025, forecasting earnings per share of ZAR 1.40 to ZAR 2.10. This is significantly lower than the ZAR 9.52 reported in the previous comparable period (company statement).
- The company expects headline earnings attributable to shareholders for the period to be between ZAR 180 million and ZAR 280 million (company statement).
Valuation Changes
- Consensus Analyst Price Target: Lowered from ZAR 94.95 to ZAR 76.75, reflecting a significant decrease in estimated fair value.
- Discount Rate: Remains unchanged at 16.74%.
- Revenue Growth: Expected to improve slightly, from -6.07% to -4.95%.
- Net Profit Margin: Forecast declines moderately, from 1.38% to 1.33%.
- Future P/E: Revised down from 44.70x to 36.13x, indicating lower anticipated earnings multiples.
Disclaimer
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