June 7 (Bloomberg) -- Naspers Ltd., Africa’s biggest media company, advanced to the strongest level in almost three months after Goldman Sachs Group Inc. rated it a “buy” in new coverage.
The stock increased 1 percent to 404 rand at 10:23 a.m. in Johannesburg, the highest since March 11.
Goldman Sachs analysts, including Alexander Balakhnin, put a price estimate of 528 rand on the company, which has television and Internet interests in Africa, Brazil, Russia and China.
“We believe investors are underestimating the value of Naspers’ Internet and pay-TV assets,” the analysts wrote in the note dated today.
Naspers’s pay-television business is well-positioned to remain a dominant operator in South Africa and will be able to build up leadership in sub-Saharan Africa over the long term, according to the analysts.
“We believe the shares will benefit from a re-rating of core assets and a narrowing of the holding company discount.”
Naspers indirectly owns 39.3 percent of Mail.ru and about 35 percent of Tencent. Goldman Sachs sees a 35 percent upside for Mail.ru Group, the Russian Internet service, and 4 percent upside for China’s biggest social media Internet service Tencent Holdings Ltd., according to the research note.
--Editors: Gavin Serkin, Ana Monteiro
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