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- Naspers Limited (NPSNY): Undervalued Due to Stake in Tencent Holdings and Broad Venture Portfolio, Sees 40% Upside
Naspers Limited (NPSNY): Undervalued Due to Stake in Tencent Holdings and Broad Venture Portfolio, Sees 40% Upside
Ticker: NPSNY | Price: $35 | Potential: 40% | Timeframe: 12-18 months | Source: Seeking Alpha 📈 Technology & Venture Capital | 🚀 Undervalued Giant | 📈 Bullish idea
Kristoffer Lindström
February 19, 2024
STOCK IDEA - Naspers
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Naspers Limited (NPSNY): Undervalued Due to Stake in Tencent Holdings and Broad Venture Portfolio, Sees 40% Upside (Seeking Alpha)
Naspers Limited (NPSNY) is seen as undervalued, with a 40% potential upside, due to its significant stake in Tencent Holdings and a diverse venture portfolio currently undervalued by the market. Despite Naspers' market cap being eclipsed by its Tencent holdings, its broad venture investments are negatively valued, which is deemed unreasonable. The company is leveraging substantial buybacks funded by reducing its Tencent stake, offering interim capital payouts as the market discount narrows. Analysts highlight the timely opportunity to invest in Naspers, as it monetizes Tencent's value into shareholder returns against a backdrop of market undervaluation and negative enterprise value (EV) concerns. Key risks include regulatory challenges in China's gaming sector. Naspers, a global investor in tech and digital sectors, benefits from scale advantages, network effects, and intangible assets through its vast investment portfolio.
Ticker: NPSNY | Price: $35 | Potential: 40% | Timeframe: 12-18 months | Source: Seeking Alpha
📈 Technology & Venture Capital | 🚀 Undervalued Giant | 📈 Bullish idea
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