Equity Analysis /

Letshego: LETSHEGO HOLDINGS: FY 17 results, conference call feedback

    Tellimer Research
    27 March 2018
    Published byTellimer Research

    In its conference call on 26 March, the company's management said the recent upward ROE trend is likely to be sustained, with higher volumes and better cost control likely to offset a further near-term IFRS9-driven increase in risk costs, and subsequently push convergence to the long-term target level of 25%. Top-line growth will be driven by continued customer acquisition, while a broader product offering should also facilitate improved cross-selling. Letshego trades at 5.6x 2017 PE and 1.0x PB.

    This report has been commissioned by Letshego Holdings and independently prepared and issued by Exotix Capital LLP for publication.