By Peet Serfontein, Mmamosa Khanye
We enter a long position with a target price of R167.00 and a stop-loss of R136.00.
Wilson Bayly Holmes-Ovcon is a diversified construction and civil engineering group with exposure to building, infrastructure, roads and earthworks projects across Southern Africa and the United Kingdom (UK).
The group works across commercial, industrial and infrastructure projects, including data centres, renewable energy, mining and transport infrastructure. As a project-based business, its performance depends on securing contracts, managing construction costs and delivering work efficiently.
Technically, the price in an upward sloping linear regression channel pattern makes the share an interesting candidate for a long position (see first insert on the main chart). The share is currently trading near the lower boundary of an upward-sloping regression channel, a level that may act as dynamic support and signal continuing buying interest if the price stabilises or rebounds.
The latest bullish swing period also supports the trade idea (see second insert on the main chart). The heatmap shows a recent increase in bullish swing periods, suggesting buying interest may be re-emerging and supporting the potential for a share price recovery. However, the signal remains mixed, and stronger bullish confirmation would require sustained higher highs, higher lows, and additional bullish swing readings.
Fading downside price momentum as reflected by the Moving Average Convergence Divergence (MACD) and the recent steep rise in the OBV indicator, supports our bullish stance.
Share performance
Share information
| Share Code | WBO |
| Industry | Building construction |
| Market Capital (ZAR) | 10 billion |
| One-Year Total Return | -3.17% |
| Return Year-to-Date | -11.86% |
| Current Price (ZAR) | 14 449.00 |
| 52-Week High (ZAR) | 21 451.00 |
| 52-Week Low (ZAR) | 12 958.00 |
| Financial Year End | June |
| The price remains below its 200-day and 200-week simple moving average (SMA) indicating that the price remains below important long-term trend measures. As a result, this is considered a counter-trend trade. | |
Consensus expectations (Bloomberg)
| FY26 | FY27E | FY28E | FY28E | |
|---|---|---|---|---|
| Headline Earnings per Share (ZAR) | 22.88 | 23.47 | 27.82 | 30.86 |
| Growth (%) | 2.60 | 18.53 | 10.93 | |
| Dividend Per Share (ZAR) | 3.20 | 6.71 | 7.95 | 8.82 |
| Growth (%) | 109.69 | 18.48 | 10.94 | |
| Forward PE (times) | 5.83 | 5.03 | 4.68 | |
| Forward Dividend Yield (%) | 4.64 | 5.50 | 6.10 | |
| The company is set to deliver positive earnings growth over the medium term with a healthily pipeline remaining supportive of overall growth. | ||||
Buy/sell rationale
Technical analysis:
Fundamental view:
Update on previous trade ideas
| Share Name and position | Entry | Current Price | Movement | Comment | Time to exit |
|---|---|---|---|---|---|
| BTI_SA - Buy (Continue to hold) | 877.50 | 978.65 | +11.5% | The developing-top remains interesting as price tests its 200-day SMA. Fading downside momentum supports the trade idea. Maintain the R1 060.00 profit target with a trailing stop-loss at R950.00. | 30 November 2026 |
| LHC - Buy (Continue to hold) | 11.76 | 12.45 | +5.9% | Strong volume support remains encouraging, with price holding above its 200-day SMA. Upside momentum supports the trade idea. The profit target remains R13.35, with a trailing stop-loss at R12.00. | 9 November 2026 |
| QLT_SA - Buy (Continue to hold) | 38.74 | 39.70 | +2.5% | The upward-sloping linear regression channel remains interesting, although the price is below its 200-day SMA. Fading downside momentum supports the trade idea. The profit target remains R44.00, with a trailing stop-loss at R38.80. | 30 November 2026 |
| CLH - Buy (Continue to hold) | 4.50 | 4.36 | -3.1% | Price symmetry and improving momentum remain interesting as it tests its 200-day SMA. However, stalled upside momentum is a concern. The profit target remains R5.12, with a trailing stop-loss at R4.25. | 11 January 2027 |
| CML - Buy (Continue to hold) | 43.21 | 41.15 | -4.8% | The approaching time exit coincides with potential development of Elliott Wave theory's fifth wave, which remains interesting. Price stays below its 200-day SMA; downside momentum is a concern. The profit target remains R49.80, with a trailing stop-loss at R40.80. | 26 October 2026 |
| SSW - Close Position (Stop-loss) | 43.49 | 40.75 | -6.3% | The position reached its planned time exit and has been closed. | 12 October 2026 |
This trade idea can be action through FNB Local Trader by visiting shares.fnb.co.za.
