A little over a year ago, Coronation Fund Managers Ltd. declared that the company was overvalued. Now that the stock has dropped by more than half following a profit warning in April, the South African investment firm has changed its tune.
“We do think that the stock offers good value to investors with a longer-time horizon,” Chief Investment Officer Karl Leinberger said by e-mail in response to questions.
Coronation needs to improve its investment performance after bets on commodities and emerging markets went sour, Harry Botha, an analyst at Avior Capital Markets Pty Ltd., said by phone from Cape Town. The company also suffered from higher bond rates in a riskier climate, though it’s still receiving inflows from outside the country, said Botha, who has a neutral rating on the stock. He said the stock ”looks slightly attractive from a valuation perspective.”