Super Group

Super Group: Initiation report by Daiwa, with an Outperform rating and TP of $3.95. House notes that the company is a quality instant-coffee play leveraged to 3 structural themes: 1) Asia’s current strong consumption boom, driven by the rising middle class, 2) rising coffee consumption in developing Asia, and 3) strong growth potential in the instant-coffee segment. Superior EBITDA margin relative to regional peers would be underpinned by Super's strong pricing power, cost efficiencies and scalability of operations. Valuation wise, Super Group's current 21x forward earnings multiple, which is in line with regional peers, looks inexpensive given its structural growth story.