WATCH: Stock pick — Telkom

Craig Pheiffer from Absa Wealth Management chose Telkom as his stock pick of the day.

He said it was difficult to find a retailer in the current market, but in the telecoms industry, Telkom was starting to look “quite promising”.

“Although their recent numbers were quite poor, looking forward as one should, revenue will be largely driven by mobile, which will also push their earnings growth up. Telkom has a good dividend yield at a very fair valuation of a forward PE [price-earnings ratio] of 10.”

Source: businesslive.co.za