One year on, Tiger Brands still has a mountain to climb
The stock has lost 37% since it was named the culprit of the listeriosis outbreak
It has been exactly a year — March 4 2018 — since Tiger Brands was named as the culprit in the listeriosis outbreak. And while the group has relaunched its value-added meat-products business, its shares are still about 37% lower than they were 12 months ago. Tiger Brands’s shares plunged in the days after health minister Aaron Motsoaledi announced that polony and products from an Enterprise Foods factory were the source of the deadly outbreak. The stock, which was trading at R425 when the announcement was made, dipped below the R250 mark by October 2018. It has since recovered slightly, closing at R266.68 on Friday. At these levels, JP Morgan rates Tiger Brands a “buy”, even though the group is bracing for a class-action lawsuit. The US bank said in a report in February, when Tiger Brands published a trading update, that it expected the stock to recover to R314 by the end of 2019. In its update, Tiger Brands said group revenue from continuing operations in the four months to end-Jan...
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