Mr Price Group is the third largest South African retail company founded in 1885 and traded on Johannesburg Stock Exchange since 1952. The 962 stores are located in Namibia, Botswana, Kenya, Tanzania, Malawi and South Africa.

Earnings for fiscal year 2012, published on May 23rd, were the testimony of a good year. With a 12.1 billion South-African Rand (ZAR) turnover and a ZAR 1.2 billion net income, the company recorded 11.4% net margin. Turnover rose about 10% due to consumer spending improvement because of low interest rates. The first Nigerian store opened in March is a positive experience and the company planned to set up in Ghana in June. South African retail sales statistic was higher than the consensus at 6.8% in March and could maintain the organic growth of the company.

Earnings per share were at ZAR 463 for 2012 and are expected at ZAR 601 for 2013. The company integrated the MSCI South Africa Index in May 2012.

Technically the stocks shows a perfect bullish profile since its IPO in May 2010. Introduced at ZAR 42.8 on May 17th 2010, the stock is trading now at ZAR 110.5. The security is surperfoming its index and was not impacted by the decline in 2011. This defensive profile could represent an interesting investment opportunity. The continuation of a bullish tendency could bring us to fix a target at ZAR 120. A stop loss will be set at ZAR 105.