MS ups Prosus and parent Naspers to 'overweight' as discount gap peaks

Tencent Holdings

25/03/2026 08:03

** Morgan Stanley raises Prosus PRX.AS and its South African parent Naspers  NPNJn.J to "overweight" from "equal-weight", saying the recent widening of the Dutch technology investor's discount has largely run its course

** It notes Prosus' stock trades at a 48% discount to its NAV and says "this alone makes now an interesting entry point"

** MS also sees a 26% upside for Prosus' core holding Tencent 0700.HK despite near-term margin pressure from the Chinese tech firm's ramp-up in AI investments

** Prosus is highly proactive in engaging with AI across the European internet sector, potentially creating additional "optionality" for the stock, the broker adds

** "We upgrade Naspers ... as we feed through our upgrade of Prosus, with nearly all its NAV driven by Prosus," it says

** MS cuts Prosus' PT to 51 euros ($59) from 57 euros, and Naspers' PT to 112,500 South African rand ($6,646) from 126,000 rand

** Out of 20 analysts that cover Prosus, 15 rate the stock "strong buy" or "buy" and​ five "hold" - LSEG data

($1 = 0.8622 euros)

($1 = 16.9272 rand)

(Reporting by Mathias de Rozario)

((mathias.derozario@tr.com))