Prosus: Growth requires even larger investments

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Prosus: Growth requires even larger investments

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Prosus

Growth requires even larger investments

Reiterate Rating: BUY | PO: 66.00 EUR | Price: 40.15 EUR

Buying opportunity throughout the investment cycle 08 June 2026

Prosus is seeking to fast-track the JET turnaround and fend off rising competition from Equity

Meituan and DiDi in Brazil, leading us to cut segment EBITDA by 13/9% for FY27/28E.

Whilst we now expect only 5% segment EBITDA growth in FY27E, we see a recovery in

Key ChangesFY28E (+35%) driven by improved operational momentum in food and increased

monetization and operating leverage in classifieds. Given PRX’s greater AI focus (also (US$) Previous Current

applies to its investees) and its deep value (+63% upside, 11.5x 27E P/E, unlisted assets 2026E EPS 3.83 3.81

priced at a negative value assuming a 15% discount to Tencent), we reiterate Buy. 2027E EPS 4.12 4.06

2028E EPS 4.53 4.41

Brazil food delivery competition heats up further

Prosus is building an ecosystem around iFood that has a unique branding; well-funded Cesar Tiron >>

Research Analyst

DiDi offers free delivery and BRL$99 vouchers for customers, zero fees plus reduced Merrill Lynch (DIFC)

commissions and cash upfront to restaurants, alongside +50% rider incentives versus +971 4 425 8216 cesar.tiron@bofa.com

peers. Given DiDi already reached 10-16% market share in select large cities including

Ophelie Grassini >>

Sao Paolo per Valor, we now forecast iFood EBITDA to decrease by 71% in FY27E and a Research Analyst

+153% recovery in FY28, implying cash OPEX of $2.4/2.6bn for FY27/28E, respectively. Merrill Lynch (DIFC) +971 4 425 8332

ophelie.grassini@bofa.com

JET turnaround ongoing with larger investments Alex Liu >>