Share

Steinhoff share-price collapse blindsides optimistic analysts

Frankfurt - Investors shocked at the money they’re losing on positions in Steinhoff International have a lot of company in the analyst community.

The shares fell as much as 62% on Wednesday after CEO Markus Jooste resigned amid a probe of accounting irregularities.

The market value of the furniture retailer, which is based in South Africa but listed in Germany, has dropped to €4.5bn from about €20bn in June. Still, through Tuesday, Steinhoff was among the stocks on which equity analysts were most bullish.

Among the 50 stocks in Germany’s midcap MDAX index with the highest aggregate recommendations, Steinhoff is the only one to decline this year. The others handed investors returns between 30% and 50%.

Even the experts were caught off guard by the Steinhoff probe, which had been brewing since 2015 but took a new dimension on Wednesday.

As of Tuesday, 10 analysts rated Steinhoff shares at buy and eight rated them hold. The company had no sell recommendations. Some analysts have placed their ratings under review. The average share-price target by 11 analysts on Wednesday is €4.82, which the shares would have to more than quadruple to reach.

* Sign up to Fin24's top news in your inbox: SUBSCRIBE TO FIN24 NEWSLETTER

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.99
-0.3%
Rand - Pound
24.07
+0.2%
Rand - Euro
20.60
-0.0%
Rand - Aus dollar
12.36
+0.5%
Rand - Yen
0.13
+0.7%
Platinum
901.37
-0.1%
Palladium
1,000.53
-0.6%
Gold
2,153.18
-0.3%
Silver
24.93
-0.5%
Brent Crude
86.89
+1.8%
Top 40
65,876
-0.6%
All Share
72,094
-0.5%
Resource 10
53,201
-0.2%
Industrial 25
99,443
-1.0%
Financial 15
16,630
+0.1%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders