By Chantal Marx, Pritu Makan, Sithembile Bopela, Zimele Mbanjwa, Motheo Tlhagale, Khumbulani Kunene
Salesforce (CRM US)
Salesforce is a cloud-based software company that designs and develops enterprise solutions. The company offers a leading customer relationship management (CRM) service to businesses worldwide, providing a complete suite of applications designed to help businesses manage customer relationships, automate processes, and unify data across sales, service, marketing, commerce, and IT on a single integrated platform.
In 2Q26 to the end of July, top- and bottom-line metrics saw double-digit growth, and management's outlook remained positive. The company continues to strengthen its data foundation, governance and integration capabilities following its acquisition of AI- powered cloud data management company, Informatica, earlier in the year. Furthermore, acquisitions in recent years have started bearing positive results.
Salesforce is trading on a forward PE of 19.6 times, a slight discount relative to its long-term history.
NextEra (NEE US)
NextEra is a leading energy company specialising in electric power and energy infrastructure development. The company's portfolio includes natural gas, nuclear and renewable energy, including industry leading wind and solar power and battery storage. The group's core businesses include Florida Power & Light Company (FPL), America's largest electric utility by retail electricity produced and sold, and NextEra Energy Resources (NEER), a major developer of energy infrastructure with 20% share of the US renewables market. This dual structure gives it both stable cash flows from regulated operations and high growth potential from renewables.
Downside risks to our view include policy changes, specifically the potential repeal of the Inflation Reduction Act (IRA). While a complete repeal of the Act remains a low probability outcome, any roll back or delay in clean energy incentives, including tax credits, will negatively impact energy supply chains in the medium term, specifically smaller clean-energy rivals. However, as the global clean energy transition remains underway, NEER's scale and pipeline progress bode well for further potential upside and market share gains in a renewables pull-forward environment.
On a forward PE multiple of ~22 times, the company trades at premium relative to its peers but an attractive discount to its own long-term average rating.
Axon Enterprise (AXON US)
Axon is a leading US-based public safety technology company which provides an integrated ecosystem of conducted energy devices under the TASER brand, along with body-worn and in-car cameras, sensors, drones, robotics, and cloud-based software solutions for evidence management, real-time operations, and AI-driven insights. Axon serves law enforcement, government agencies, enterprises, and communities across more than 100 countries, aiming to enhance safety, accountability, and efficiency through connected devices and advanced digital platforms.
Axon sees multi-year tailwinds from AI, cloud migration, and integrated ecosystem offerings. We agree that the total addressable market for the company is substantial and together with the strong revenue performance and future-facing metrics (bookings, ARR, and NRR), they make for a continued attractive growth picture. Recent price action has derated the stock to what we believe to be a fairer entry point.
Axon is trading on a forward PE 75 times - in line with its long-term valuation range. The sell-side is still overwhelmingly positive on the company, with an aggregated target price of $810 - 45.5% above current levels.
Birkenstock Holding plc (BIRK US)
Founded in 1774, Birkenstock is best known for inventing the contoured footbed, a design that has become synonymous with comfort and orthopaedic support. Over the centuries, Birkenstock has evolved from a family-run workshop into a global "super brand". Its products span entry-level to luxury price points, appealing to a broad demographic while maintaining a core focus on function, quality, and tradition.
Birkenstock's third-quarter results to the end of September were strong, with revenue up 16% in constant currencies. Growth was broad-based, with double-digit increases across all segments and geographies. Closed-toe footwear continued to gain share, driving ASP higher and supporting top-line momentum.
At the time, management reaffirmed guidance for FY25, expecting revenue growth at the high end of the 15% to 17% constant currency growth range. The business noted headwinds including currency impacts and tariffs but nevertheless kept its medium- term margin outlook in check.
On current multiples, Birkenstock trades at a significant discount to its average rating since listing and a discount to peers despite its superior growth profile, brand strength, and robust margin structure.
L'Oreal (OR FP)
Founded in 1909 by Eugene Schueller, L'Oreal has evolved from a pioneering French hair dye business into one of the world's leading beauty companies, with a presence in over 150 countries and a growing portfolio of brands spanning mass market, luxury, professional, and dermatological segments. The group's business model is built on relentless innovation, global scale, and a multi- channel distribution strategy encompassing e-commerce, mass retail, department stores, pharmacies, salons, and travel retail.
L'Oreal's third-quarter results to September 2025 confirmed the group's ability to deliver resilient, broad-based growth in a challenging macro environment. Like-for-like sales growth accelerated to +4.9% in Q3, with all divisions contributing and momentum improving in both North America and mainland China two of the group's largest markets.
We continue to view L'Oreal as the structural winner in global beauty, with further upside as luxury and emerging markets recover and the benefits of recent acquisitions and partnerships are realised.
L'Oreal's valuation remains at a premium to the sector, reflecting its unrivalled scale, innovation, and brand equity, as well as its consistent ability to compound growth and defend margins through pricing power and mix improvement. The stock's valuation relative to its own history remains depressed, however.
