BRITAM......................BUY...................... Kshs 14.95
Shift of focus by the insurer to real estate will ensure a more stable income stream. Numerous real estate projects, both residential and commercial currently under development/ lined up for development.
Upcoming KES 10bn property fund to provide a cash boost for real estate ventures. Britam is also developing a 30 storey office complex in the Upper Hill area to be completed in 2016. Britam has partnered with Equity and Family Bank to sell its pension scheme to small and medium firms. The new scheme, which will be under
Britam American Asset Managers, is expected to leverage on a wide distribution network provided by Britam offices, Family’s 80 branches and Equity’s 160 branches to reduce operational costs.

That analysis by Suntra is so inclined towards real estate growth i.e. Bamburi, Centum and Britam. I wonder if this sector is still a hot cake it was years ago but time will tell.

Consolidation of existing business models the way forward

We initiate our coverage on WPP ScanGroup Ltd with a HOLD recommendation on the counter.
We estimate a target price of KES 33.34 which represents an upside potential of 1.8 percent from the current share price of KES 32.8. Our recommendation is based on views that:
 We expect flat growth in advertising revenue; Digital advertising is growing rapidly particularly in comparison with traditional media such as print. Historically, the company
has registered low single digit growth averaging at a 3 year CAGR of 1.30 percent. This has mostly been driven by 1) Slow decline in print ads and radio ads 2) Competition from other firms. We project a further flat performance on advertising revenue over the forecast period resulting in a 3 year CAGR of 0.37 percent
 Digital & Public Relations revenues stream is projected to be the next frontier for growth; We are bullish on Digital advertising and Public relations, with a forecasted 3 year CAGR of 11.00 percent and 13.00 percent respectively. Digital advertising is growing rapidly on the
back of increased internet access and mobile connectivity. Going forward, we expect accelerated growth earnings improvement in public relations from South Africa, Ghana and Kenyan market. WPP ScanGroup offers Public Relations in Ghana, Kenya, South Africa, Uganda and Tanzania. We however note that contribution to revenue from Digital and public relations segment currently stands at 9.0 percent and 8.0 percent respectively
 Diversification brought about by the multi-agency model; ScanGroup enjoys diverse revenue streams through the multi-agency model. The company plans to rebrand Group M, a global media investment management group with a network of agencies such as Mindshare and Mediacom in Nigeria and Ghana. We expect this to improve its media business. Furthermore, the rapid conclusion in advertising discipline in Nigeria Scanad & Ogilvy is still ongoing. The company is also on the forefront in leveraging on the parent company’s expertise.
 Low debt levels and a strong cash Position; The Company’s rich reserve puts it at an advantageous position to make swift strategic investments via internal financing. WPP ScanGroup Ltd cash position stood at KES 3.80bn as at FY 2014.
 Acquisitions have not impacted the company’s top line performance. We are of the view that the company should look into consolidating its existing business to impact on the topline performance.

Key risks;
 Highly valued relative to other players; WPP ScanGroup’s valuation looks expensive in our opinion, trading at a forward P/E and EV/EBITDA multiple of 19.7x and 11.7x against a peer average 15.0x and 8.9x respectively.
 Competition; we anticipate ScanGroup market share in Kenya to continue declining as new international agencies form partnerships in the industry. These international agencies include Weber ShandWick which partnered with PR agency Gina Din Corporation Communication.

http://us9.campaign-archive1.com/?u=119182ea1aa1a5f67e2d2c6a9&id=a81700620b&e=e2dac1e679

Cytonn seems to think banks stocks will do very well . KCB with an upside of 72% !

When will this happen? If they can't answer this question they must desist from telling us.