Anchor Group’s shares spiked nearly 8% on Thursday following better-than-expected financial results and promising prospects, which bode well for the future direction of the stock. Vunani Securities small-and mid-cap analyst, Anthony Clark said the stock was undervalued at the current level. He adjusted his rating from a "hold" to a "buy" following the results. The share price, which is down 52% over one year, had been negatively affected by a below par performance in some of Anchor’s managed funds and the "well-publicised travails from its 47%-owned hedge fund affiliate Capricorn", said Clark. The share price closed 4.4% higher on Thursday at R7.36. Anchor was trading at price: earnings (p:e) ratio of around 10.8 times, he said. This is below rivals Coronation (15 times) and Sygnia (30 times), but above Peregrine (two times). "Anchor is a stock I’d probably bet on for a recovery on a 12-month view. With a fair year ahead, looking at results and prospects, I can see the p:e unwinding...
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