FirstRand share price: What to expect from 1H 2021 results
In this article we look at FirstRand broker ratings, price targets and estimates ahead of the 1H 2021 results.
FirstRand earnings date?
The FirstRand earnings release date is scheduled for the 4th March 2021. The scheduled results will cover the groups second quarter and half year earnings.
H2: FirstRand results preview: What to expect?
Consensus estimates arrive at the following in terms of the groups upcoming results:
- 1H 2021 revenue expected to have increased by 7.96% (year on year) to R51,645m
- 1H 2021 earnings per share expected to have declined by 22.81% (year on year) to R1.93
FirstRand earnings, benchmarked against a domestic economy under pressure, are expected to reflect declining business activity and increased non-performing loans in the wake of the ongoing impact of the current pandemic and incumbent lockdown’s. These same themes are however likely to be reflected in major sector peer results as well.
How to trade FirstRand Interim results
The below graphic highlights a long-term institutional view and consensus price estimate on the FirstRand share price ahead of the interim earnings release.
A Refinitiv Data poll of 11 analysts maintain a long-term average rating of ‘buy’ for FirstRand (as of 1st March 2021). The long term target price (a mean of Refinitiv estimates) suggests a fair value of R55 for FirstRand, suggesting that the current share price to be more than 6% discount to this longer term valuation.
FirstRand share price: technical analysis
The share price of FirstRand remains in a short and medium term rangebound environment.
The short term range is considered between levels 4950 (support) and 5340 (resistance). The recent reversal off support of this range targets a retest of 5340.
Should the price instead move to close below 4950, this would suggest the failure of the range trade and infer a near term downside breakout.
In the event of a downside breakout of the short term range, 4550 becomes the initial support target.
In Summary
- FirstRand interim results are scheduled for release on the 4th of March
- Group revenue for 1H 2021 is expected to have increased marginally from the previous year’s comparative period
- Earnings per share are expected to have declined significantly from the prior year’s comparative interim period
- The average long term broker rating for FirstRand is ‘Buy’
- A technical analysis view on FirstRand shows a short to medium term price consolidation
This information has been prepared by IG, a trading name of IG Markets Ltd and IG Markets South Africa Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
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