Brait PLC (JSE: BAT) Eyes ZAR 2.28 as Virgin Active, Premier Drive Growth Amid SA Headwinds
Brait PLC targets ZAR 2.28 as Virgin Active and Premier Group outperform. Here's how its breakout setup aligns with economic resilience.
Quick overview
- Brait PLC is stable at ZAR 2.11, supported by strong performances from Virgin Active and Premier Group.
- Virgin Active reported a 13% year-on-year growth with an EBITDA of £119m, while Premier Group anticipates a 20-30% increase in headline EPS this year.
- Despite challenges in South Africa's economy, Brait's diversified portfolio in resilient sectors is providing a defensive buffer against local market volatility.
- Technically, Brait is nearing a breakout at ZAR 2.12, with potential targets of ZAR 2.20 and ZAR 2.28.
Brait PLC (JSE: BAT) is holding steady at ZAR 2.11 on the back of strong results from Virgin Active and Premier Group. Virgin Active grew 13% year-on-year in March 2025 with EBITDA of £119m, largely driven by UK and Italy.
Premier Group is expected to grow headline EPS by 20-30% this year despite inflation eating into consumer spending.
These results come at a time when Brait’s diversified portfolio is proving defensive in a volatile market. Despite weak results in SA and Australia, Brait’s global exposure and sector mix (fitness and food production) is shielding it from local macro drag.
SA Economic Challenges Pose Short-Term Risk
SA’s economic backdrop is still a hurdle. BankservAfrica Transaction Index fell 0.6% in April to 136.4 – lowest reading of the year. 2025 growth forecast has been cut by 0.5% as US tariffs and inflation is impacting consumer activity.
Manufacturing is in a technical recession but vehicle sales and stable mining is a selective positive.
This mixed picture presents both risk and opportunity for investors. Companies like Brait with strategic stakes in resilient sectors will continue to outperform if global growth stabilises.
Key Indicators:
- BETI Drop: 0.6% in April 2025
- 2025 Growth Forecast: Cut by 0.5%
- Sector Bright Spots: Vehicle sales and mining
Brait PLC Technical Outlook: Breakout Watch at ZAR 2.12
From a technical perspective Brait is showing early signs of a breakout. The stock is trading just below ZAR 2.12 resistance and supported by a steady trend and 50-hour EMA at ZAR 2.08. Momentum is building as seen in the MACD’s mild positive bias.
For newbies this is a textbook breakout setup:
- Buy Zone: Above ZAR 2.12 with strong volume
- Target 1: ZAR 2.20
- Target 2: ZAR 2.28
- Stop Loss: Below ZAR 2.08If resistance fails, trendline support at ZAR 2.08 is a secondary buy.
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