Standard Bank share price: What to expect from full year results
In this article we look at Standard Bank’s recent trading update, broker ratings, price targets and estimates ahead of the FY20 results
Standard Bank earnings date?
The Standard Bank results release date is scheduled for the 11th of March 2021. The scheduled results will cover the groups fourth quarter and full year earnings.
H2: Standard Bank results preview: What to expect?
The impact of Covid-19 on the domestic economy is expected to reflect in the Standard Bank Groups upcoming results. The group has indicated that it has needed to make increased provisions for non-performing loans on the back of a higher level of unemployment and lower earnings amongst its clientele.
The group has guided that:
- Headline earnings per share (HEPS) for FY20 will be between 40% and 50% lower than in FY19
- Earnings per share (EPS) in FY20 will be between 45% and 55% lower than in FY19
The full year HEPS range is therefore expected to be between 883c and 1060c, while the EPS range is expected between 717c and 876c.
How to trade Standard Bank Full Year results
The below graphic highlights a long-term institutional view and consensus price estimate on the Standard Bank share price ahead of the interim earnings release.
A Refinitiv Data poll of 10 analysts maintain a long-term average rating of ‘hold’ for Standard Bank (as of the 4th of March 2021). The long term target price (a mean of Refinitiv estimates) shows a fair value of R141.60 for Standard Bank, suggesting that the current share price (as of 4th March 2021) to be at a 4.6% discount to this longer term valuation.
Standard Bank share price: technical analysis
The share price of Standard Bank trades within a short term range between levels 13350 (support) and 14400 (resistance). The longer term trend, in place since June 2020, remains up.
Traders respecting the longer term uptrend might hope for a bullish price reversal at range support (13350) targeting a move back up to the high at 14400. However should the price reversal not occur and the share instead move to close below range support (13350), a move back towards a confluence of trendline and horizontal support at 12120 is expected. In this situations trend followers might prefer looking for long entry on a bullish price reversal closer to the 12120 level.
In Summary
- Standard Bank full year results are scheduled for release on the 11th of March
- HEPS and EPS values are expect to have contracted by at least 40%
- The average long term broker rating for Standard Bank is ‘Hold’
- A technical analysis view on Standard Bank shows a short term consolidation within a longer term uptrend
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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