By Peet Serfontein & Motheo Tlhagale
Altron is an information and communications technology (ICT) company founded in 1965. The company has operations across Africa, Europe, the Middle East, and Australia. It offers services across platforms, IT services, and distribution services. The company aims to simplify customer experience and improve operational efficiency while driving growth.
Its revenue is increasingly driven by annuity-based services, especially through platform businesses like Netstar (vehicle tracking), Altron FinTech (payment platforms), and Altron HealthTech. These generate steady income via subscriptions and managed services. Altron also generates revenue from IT consulting, cloud services, and hardware distribution.
Technically, the stock is developing a bullish pennant (see the black converging trendlines on the main chart), which is a continuation pattern that typically signals further upside. This formation follows a strong upward move (the flagpole) and is characterised by a brief consolidation phase where the price action contracts into a small symmetrical triangle, often accompanied by declining volume. The pattern suggests a temporary pause before the uptrend resumes, and a breakout above the pennant's upper boundary on rising volume confirms renewed buying interest.
The weekly price swing heatmap (see the insert on the main chart) also supports a bullish case for the share. While it shows alternating bullish and bearish swings, the recent structure appears balanced, with bullish swings becoming more frequent and sustained, a sign of accumulation and underlying demand resilience. This rhythm of rising support levels and consistent rebounds suggests the market may be transitioning from neutral to positive momentum, laying the groundwork for a medium-term uptrend.
Fading downside momentum, reflected by a rising Moving Average Convergence Divergence (MACD) histogram and an upward-turning Coppock Curve, suggests weakening selling pressure and improving long-term sentiment.
| Share Information | |
|---|---|
| Share Code | AEL |
| Industry | Software & Services |
| Market Capital (ZAR) | 7.82 billion |
| One Year Total Return | 10.18% |
| Return Year-to-Date | -8.50% |
| Current Price (ZAR) | 19.02 |
| 52 Week High (ZAR) | 25.00 |
| 52 Week Low (ZAR) | 16.50 |
| Financial Year End | February |
| The share has a beta of 0.92, indicating it is slightly less volatile than the overall market. The price currently sits above its 200-week but below its 200-day simple moving average (SMA), reflecting a transitional accumulation phase within a longer-term uptrend. | |
| Consensus Expectations (Bloomberg) | ||||
|---|---|---|---|---|
| FY25 | FY26E | Y27E | FY28E | |
| Headline Earnings per Share (ZAR) | 1.73 | 1.89 | 2.26 | 2.78 |
| Growth (%) | 9.19 | 19.38 | 23.28 | |
| Dividend Per Share (ZAR) | 0.00 | 0.98 | 1.25 | 1.80 |
| Growth (%) | 26.86 | 44.35 | ||
| Forward PE (times) | 10.07 | 8.43 | 6.84 | |
| Forward Dividend Yield (%) | 5.17 | 6.56 | 9.46 | |
| Building on Altron's strong FY25 results the company is well-positioned for solid medium-term growth, supported by a robust Platforms segment. | ||||
Buy/Sell Rationale:
Technical Analysis:
Fundamental view:
| Share Name and Position | SBK SA - Take Profit (Close the position) |
GRT SA - Take Profit (Close the position) |
INL SA - Stop-loss (Close the position) |
|---|---|---|---|
| Entry | 233.57 | 13.22 | 134.01 |
| Current Price | 256.00 | 15.73 | 127.09 |
| Movement | +9.6% | +19.0% | -5.2% |
| Comment | The stock is approaching our profit target, and we opted to close the position early to reduce portfolio risk. | The stock is approaching our profit target, and we opted to close the position early to reduce portfolio risk. | The share price breached our stop-loss level, prompting us to close the position. |
| Time to exit | - | - | - |
| Share Name and Position | ARI SA - Buy (Continue to hold) |
VOD SA - Buy (Continue to hold) |
ANH SA - Buy (Continue to hold) |
|---|---|---|---|
| Entry | 184.00 | 132.90 | 1 031.56 |
| Current Price | 185.74 | 137.61 | 1 033.75 |
| Movement | +0.9% | +3.5% | +0.2% |
| Comment | A developing falling wedge persists above the 200-day SMA, though fading upside momentum poses concern. We retain a profit target of R227.00, with a trailing stop at R169.00. | A low-volatility phase suggesting market stability and accumulation remains notable. The price stays above the 200-day SMA, with fading downside momentum supporting the trade. We maintain a profit target of R157.00 with a trailing stop at R128.00. | The price remains within an upward-sloping regression channel but below the 200-day SMA, framing this as a counter-trend trade. Fading downside momentum supports the setup. We maintain a profit target of R1 255.00 and a trailing stop at R944.00. |
| Time to exit | 17 December 2025 | 11 February 2026 | 17 February 2026 |
| Share Name and Position | SHP SA - Buy (Continue to hold) |
CFR SA - Buy (Continue to hold) |
DCP SA - Buy (Continue to hold) |
|---|---|---|---|
| Entry | 278.33 | 2 980.00 | 32.60 |
| Current Price | 286.82 | 3 313.32 | 33.70 |
| Movement | +3.1% | +11.2% | +3.4% |
| Comment | The price continues to trend within a well-defined rising channel and has crossed above the 200-day SMA. However, muted upside momentum poses concern. We maintain a profit target of R312.00 and a trailing stop at R273.00. | The emergence of Wave 1 within the Elliott Wave structure remains of interest, with price holding just above the 200-day SMA. Strengthening upside momentum supports the trade. We maintain a profit target of R3 517.00 and a trailing stop at R3 099.00. | A developing symmetrical triangle pattern remains noteworthy as the price trades above the 200-day SMA. However, fading upside momentum poses a concern. We maintain a profit target of R37.00, with a trailing stop at R32.00. |
| Time to exit | 9 December 2025 | 28 April 2026 | 29 October 2025 |
| Share Name and Position | TBS SA - Buy (Continue to hold) |
|---|---|
| Entry | 304.50 |
| Current Price | 331.01 |
| Movement | +8.7% |
| Comment | Strong price action supported by a rising VPT and steady accumulation highlights continued upside potential post-consolidation. The price remains above the 200-day SMA, with emerging upside momentum reinforcing the trade. We maintain a profit target of R345.00 and a trailing stop at R315.00. |
| Time to exit | 27 October 2025 |
FNB Stockbroking and Portfolio Management (Pty) Ltd, a subsidiary of FirstRand Bank Limited, an authorised Financial Services Provider and authorised user of the JSE limited (Reg no: 1996/011732/07). This Publication note is issued by FNB Stockbroking and Portfolio Management (Pty) Ltd for the information of clients only and should not be produced in whole or part without prior permission. Although FNB Stockbroking and Portfolio Management (Pty) Ltd is an Authorised Financial Services Provider, any opinions and/or analysis contained in this Publication are for informational purposes only and should not be considered advice, including but not limited to financial, legal or tax advice, or a recommendation to invest in any security or to adopt any investment strategy. The information contained herein has been obtained from sources/persons which we believe to be reliable but is not guaranteed for correctness, completeness or otherwise and we do not assume liability for loss arising from errors in the information or that may be suffered from using or relying on the information contained herein irrespective of whether there has been any negligence by us, our affiliates or any other employees of us, and whether such losses be direct or consequential. As market and economic conditions are subject to rapid change, any comments, opinions, and analysis is rendered as of the date of publishing and may change without notice. Such changes may have a material impact on the outcome of any investment. Securities involve a degree of risk and are volatile instruments. Past performance is not indicative of future performances. Securities or financial instruments mentioned in the Publication note may not be suitable for all investors and FNB Stockbroking and Portfolio Management (Pty) Ltd has bares no responsibility whatsoever arising from or as a consequence hereof. The material is not intended as a complete analysis of every material fact regarding any share, instrument, sector, region, market, country, investment, or strategy. The recipient of this Publication must make their own investment decision and is advised to contact his relationship manager for a personal financial analysis prior to making any investment decisions. Copyright 2018 by FNB Stockbroking and Portfolio Management (Pty) Ltd.
