Sanlam South Africa stock rises ahead of first-half results

JOHANNESBURG – Shares in South African insurer Sanlam rose yesterday after an upgrade ahead of the release of its half-year results.

The company is due to release first-half results today. The share price was up 1,7 per cent at 9,12 rand by 1030 GMT having gained as much as 3,34 per cent earlier in the day – the highest level since mid-May and outperforming the JSE Securities Exchange’s top 40 index which was up 0,32 per cent.The rise followed an investment rating upgrade by Deutsche Securities to “buy” from “hold” and a price target of 12 rand.Deutsche analyst Risto Ketola said in a research report that there was room for a re-rating of Sanlam’s operations – principally its life insurance business – if the value of the group’s shareholding in banking group Absa and short-term insurer Santam was stripped out of the share price.”Clearly the valuation of 797 cents per share is very attractive compared to the 513 cents per share currently priced by the market,” Ketola said in the report.Sanlam said in June that profits in the first four months of the year grew by between 10 and 30 per cent as the benefits of a restructuring programme kicked in.Ketola said Deutsche Securities expected Sanlam to post first-half headline earnings per share of 60 cents per share, a 46 per cent increase on the same period last year.-Nampa-ReutersThe share price was up 1,7 per cent at 9,12 rand by 1030 GMT having gained as much as 3,34 per cent earlier in the day – the highest level since mid-May and outperforming the JSE Securities Exchange’s top 40 index which was up 0,32 per cent.The rise followed an investment rating upgrade by Deutsche Securities to “buy” from “hold” and a price target of 12 rand.Deutsche analyst Risto Ketola said in a research report that there was room for a re-rating of Sanlam’s operations – principally its life insurance business – if the value of the group’s shareholding in banking group Absa and short-term insurer Santam was stripped out of the share price.”Clearly the valuation of 797 cents per share is very attractive compared to the 513 cents per share currently priced by the market,” Ketola said in the report.Sanlam said in June that profits in the first four months of the year grew by between 10 and 30 per cent as the benefits of a restructuring programme kicked in.Ketola said Deutsche Securities expected Sanlam to post first-half headline earnings per share of 60 cents per share, a 46 per cent increase on the same period last year.-Nampa-Reuters