STRAT to the point: Calling for growth

Research evidence excerpt

STRAT to the point: Calling for growth

Idea

June 8, 2026 11:01 PM GMT

RMB Morgan Stanley Proprietary Limited+MSTRAT to the point | EEMEA Christopher Nicholson

Equity Strategist and Analyst

Calling for growth Christopher.Nicholson@rmbmorganstanley.comAndrea Masia +27 11 587-0816

Economist

Andrea.Masia@rmbmorganstanley.com +27 11 587-0820

Key recent research

Exhibit 1: SA telcos - the expected 2-year forward earnings growth (FY28 on South Africa Equity Strategy+: Optically cheap,

FY26) against the 12M forward dividend yield currently screens attractively selectively interesting (8 Jun 2026)

relative to history. US Equity Strategy: Weekly Warm-up: A Healthy

Reset (8 Jun 2026)

Sunday Start | What's Next in Global Macro:

Chipflation (7 Jun 2026)

EEMEA Equity Strategy: How to Position for

Middle East De-Escalation? (1 Jun 2026)

Sunday Start | What's Next in Global Macro: The

Inelastic Economy (24 May 2026)

Source: Datastream from LSEG, Bloomberg, RMB Morgan Stanley Research estimates (e)/ MTN / Vodacom data provided over the

past 23/17 years. Global Strategy Mid-Year Outlook: Constructive,

Not Complacent (12 May 2026)

Expected earnings growth in the Telcos sector, a stand out. On a weekly basis we

South Africa Economics & Equities: Corporate

provide our South African equity sector dashboard - see Exhibit 3 . The expected

Margins and Inflation Transmission (5 May

earnings growth offered by the telcos sector currently stands out - 25% on a 2 year

2026)

forward CAGR basis (FY28 on FY26), second only to the oil/ chemicals sector

(Sasol). In Exhibit 1 , we show the historical (inverse) relationship between the 12

month forward dividend yield and 2 year forward expected earnings growth (FY28

on FY26). The key point here is that both MTN and Vodacom stack up attractively