Telkom share rally might not be over, analysts say
Stock may just be taking a breather, some say
Telkom’s share price recovery hit a snag last week, with the stock retreating 7%, but some analysts say it may just be taking a breather. From a low of R47.50 in September 2018 the stock rallied 44% to reach R68.57 on January 11 — the best level in a year and a half. But the stock pulled back to R64.07 by Monday’s close, with some analysts saying the share was now fairly priced or even expensive. JP Morgan analyst JP Davids has downgraded his recommendation on Telkom to “neutral” from “overweight” and set a price target of R68 a share, according to a Bloomberg filing last week.
At the same time, Investec analyst Niel Venter downgraded his recommendation to “sell” from “hold”, with a price target of R60. But other analysts believe the stock still has positive momentum. “From a technical perspective, we have, over the last week, started to see a retracement,” said Lester Davids, a trading desk analyst at Unum Capital. But the share “may be entering a period of short-term price c...