Goldman Sachs has begun coverage of Prosus, the Amsterdam-listed global tech investment group, with a neutral rating, pointing to persistent worries over the disparity between its stock price and underlying net asset value (NAV). The bank’s analysts noted that while Prosus holds a portfolio of high-quality internet assets, the current discount to NAV — a measure of the company's intrinsic worth — remains a sticking point for investors seeking clearer upside.
Prosus, which is majority-owned by South Africa’s Naspers, has long traded at a discount to its NAV, a phenomenon that has frustrated shareholders and prompted share buyback programmes. Goldman Sachs’ neutral stance suggests that while the company’s assets are sound, the structural discount could persist, limiting near-term share price gains. The rating arrives as global tech stocks face renewed pressure from higher interest rates and shifting investor sentiment.
The initiation comes amid a broader market backdrop where the FTSE 100 edged 0.3% lower to 7,847.32 points, as rate-sensitive sectors weighed on sentiment. Prosus shares themselves have been volatile, reflecting wider uncertainty in technology valuations. For UK investors holding funds or trusts with exposure to Prosus, the neutral rating underscores the importance of monitoring NAV trends and discount dynamics.
Analysts at Goldman Sachs highlighted that Prosus’s portfolio — which includes stakes in Tencent, food delivery platforms, and other internet ventures — offers diversification but also exposes it to regulatory headwinds in China and slowing growth in emerging markets. The bank’s report did not rule out eventual narrowing of the discount but cautioned that it may require more aggressive capital allocation or a catalyst such as a major asset sale.
For UK pension holders and retail investors, the neutral rating serves as a reminder that even well-capitalised tech investment vehicles can underperform due to structural factors. The broader market context — with the Bank of England maintaining a cautious stance on inflation — means that growth-oriented stocks remain sensitive to rate expectations. Goldman Sachs’ view adds to the debate over whether such discounts represent buying opportunities or value traps.
Source: Goldman Sachs research note