By Peet Serfontein & Pritu Makan
Bidcorp is a market-leading food service product distributor across several geographies including the United Kingdom, Europe, Middle East, South America, the Asia-Pacific region, and South Africa. The company's business units operate across the food and ingredient manufacturing sectors, such as catering, hospitality, leisure, baked products, poultry, meat, seafood, and processing.
The strategy is to grow organically in existing regions and acquisitively in new ones. The company is financially strong, with relatively low levels of gearing and a robust business model with solid diversification and defensive characteristics.
Technically, the combination of a sustained bounce off the lower one standard deviation band (see the insert on the main chart), ongoing support from the broader upward trend, and signs of renewed buying interest makes the share an interesting candidate for a long position. Bullish momentum based on a price swing analysis also supports a bullish case.
The price is using its 200-day simple moving average (SMA) as major support, suggesting that long-term investors continue to view the share as fundamentally strong and that the longer-term trend remains intact.
Downside momentum, according to the Moving Average Convergence Divergence (MACD) histogram indicator, is a concern.
We suggest a medium capital at-risk allocation to this trade. Increase exposure for a break above R492.
| Share Information | |
|---|---|
| Share Code | BID |
| Industry | Food Services |
| Market Capital (ZAR) | 153.73 billion |
| One Year Total Return | 11.27% |
| Return Year-to-Date | 7.35% |
| Current Price (ZAR) | 456.30 |
| 52 Week High (ZAR) | 497.98 |
| 52 Week Low (ZAR) | 408.37 |
| Financial Year End | June |
| Several technical indicators suggest that the share price is well positioned for upside potential. Expect moderate volatility in the price. | |
| Consensus Expectations (Bloomberg) | ||||
|---|---|---|---|---|
| FY24 | FY25E | FY26E | FY27E | |
| Headline Earnings per Share (ZAR) | 23.96 | 25.55 | 27.94 | 30.51 |
| Growth (%) | 6.63 | 9.34 | 9.21 | |
| Dividend Per Share (ZAR) | 10.90 | 11.73 | 12.83 | 14.04 |
| Growth (%) | 7.61 | 9.39 | 9.45 | |
| Forward PE (times) | 17.86 | 16.33 | 14.96 | |
| Forward Dividend Yield (%) | 2.57 | 2.81 | 3.08 | |
| Company fundamentals remain solid and near-term earnings growth is decent. | ||||
Buy/Sell Rationale:
Technical Analysis:
Fundamental view
| Share Name and Position | QLT - Buy (Continue to hold) |
NTC - BUY (Continue to hold) |
ABG - Buy (Continue to hold) |
|---|---|---|---|
| Entry | 32.57 | 14.14 | 171.50 |
| Current | 37.61 | 14.38 | 172.84 |
| Movement | +6.6% | +1.7% | +0.8% |
|
The start of Wave 5 out of the Elliott Wave theory remains of interest. Remains above its 200-day simple moving average. Upside momentum has halted, which is a concern.
Our profit target is R41 with a trailing stop-loss at R34.50. Exit the trade around 14 July 2025. |
A double-bottom pattern remains of interest. Continues to test its 200-day simple moving average. Fading upside momentum is a concern.
Our profit target is R16 with a trailing stop-loss at R13.50. Exit the trade around 21 July 2025. |
A favourable peer comparison remains of interest. Remains below its 200-day simple moving average. Fading downside momentum supports the trade.
Our profit target is R200 with a trailing stop-loss at R160. Exit the trade around 14 July 2025. |
| Share Name and Position | GRT - Buy (Continue to hold) |
WBO - BUY (Continue to hold) |
STXFIN - Buy (Continue to hold) |
|---|---|---|---|
| Entry | 13.22 | 184.64 | 21.75 |
| Current | 13.32 | 182.00 | 21.34 |
| Movement | +0.8% | -1.4% | -1.9% |
|
The price is in one of the highest price bins of the price distribution analysis. Continues to test its 200-day simple moving average. Fading upside momentum continues to be a concern.
Our profit target is R16 with a trailing stop-loss at R12. Exit the trade around 17 November 2025. |
Significant volume accumulation at lower price levels remains of interest. Remains below its 200-day simple moving average - the trade is regarded as a counter-trend strategy. Fading downside momentum supports the trade.
Our profit target is R215 with a trailing stop-loss at R173. Exit the trade around 22 August 2025. |
The price is trading above major support. Remains just above its 200-day simple moving average. Fading upside momentum is a concern.
Our profit target is R25 with a trailing stop-loss at R20.50. Exit the trade around 15 September 2025. |
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