Drikus Combrinck from Capicraft chose Nutrien as his stock pick of the day and Graeme Körner from Körner Perspective chose Barclays Africa. Nutrien is a Canadian listed company that was formed in 2018 when PotashCorp and Agrium officially merged. “Their numbers show $500m annually in synergies and in the first quarter they already unlocked around $150m, which is a pretty good run rate. Since the merger, they had to sell some of their assets.… SQM will yield around $5bn in cash, which they will use to buy back shares,” said Combrinck. Körner said it was “really difficult to find value in the local market”. “[Barclays Africa’s] December consensus figures are just under R20 (around R19.50) and if you put that on a 10 multiple, you have a target price of R195, which is quite conservative. This share will most probably also pay you a dividend yield of 6.4%, even though key management took sabbaticals, which is off concern, but the company should be given the benefit of the doubt,” he sai...
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