Rand higher on favourable local improvements

Analyst thesis

Our recommendation is based on: 

• Fortinet’s growth thesis remains supported by technology leadership (ASIC architecture, AI investments) and strong long-term secular tailwinds in cybersecurity (SASE and SecOps).
• The faster-than-expected progress in the 2026 firewall device refresh cycle (already 40%–50% complete) could limit near-term future product revenue growth, as much of the upgrade demand may have been pulled forward, reducing sales potential in upcoming quarters. Services revenue guidance was trimmed due to slower billing conversion and acquisition-related churn, while emerging legal risks, including class action lawsuits, and inconsistent management communication have heightened investor concerns about transparency and near-term growth.
• Despite these issues, Fortinet's long-term growth prospects remain strong, supported by innovation and ongoing demand for its network security solutions.
• The FTNT is trading at lower multiples than its historical average and is cheaper than its comparable peer, Palo Alto, despite historically demonstrating stronger growth and profitability.

Analyst thesis

Our recommendation is based on: 

• BHP reported record consolidated copper production of 2.02 million tonnes in FY25, which exceeds Freeport-McMoRan’s consolidated copper production for 2024.
• Copper demand is poised to expand in the coming years amid the global shift towards electrification, renewables, and digital infrastructure. Meanwhile, the IEA flagged a potential copper supply shortfall by 2035, suggesting that prices are likely to remain well supported in such an environment.
• BHP’s Vicuña joint venture is anticipated to start copper production around 2030, increasing overall production in a demand-rich environment, while benefitting from synergies that will lower costs.
• BHP’s low-cost operations and disciplined capital management position it to sustain a prolonged cyclical recovery in bulk commodity demand, like iron ore, which is very sensitive to the Chinese economy and construction industry.

Analyst thesis

Our recommendation is based on: 

• Stronger South African cash generation: Like-for-like net property income improved on fewer rent cuts, lower vacancies, and better cost recoveries - supporting distributable income per share growth.
• Cleaner offshore footprint: Disposals and exits reduced overseas earnings volatility while keeping useful diversification.
• Improved balance sheet, funding tailwind: Leverage and interest cover are comfortable, borrowing costs are trending lower, and further rate cuts would add flexibility.
• Resilient portfolio mix: Logistics and industrial remains tight with steady renewals, while the V&A Waterfront is almost fully let with strong tenant demand; capex is focused on modern Western Cape nodes.
• Energy self-help: A large solar base and the upcoming Etana PPA will wheel power, easing tariff pressure and backup-power costs to support margins.