Prosus & Naspers: KPI Radar - Discounts narrow, listed asset NAV declines over the past week

Research evidence excerpt

Prosus & Naspers: KPI Radar - Discounts narrow, listed asset NAV declines over the past week

Marcus Diebel AC Europe Equity Research

(44-20) 7742-4447 29 July 2026 J P M O R G A N

marcus.diebel@jpmorgan.com

Investment Thesis, Valuation and Risks

Prosus (Overweight; Price Target: €74.00)

Investment Thesis

We believe that the operations are shaping up nicely with strong momentum in the

Ecosystem portfolio with ambitions to grow 3.5x in Adj. EBITDA from FY25-FY28 and

Ecosystem starting to generate positive FCF, surpassing its previous reliance on Tencent

dividends. Further, Tencent, which is covered by our colleague Alex Yao, continues to

perform well, currently valued at HK$700 per share. This supports our positive view on

PRX/NPN, where we expect: 1) the ongoing open-ended buybacks to be NAV accretive per

share annually; 2) management execution towards further profitability improvements as

outlined in Prosus’s CMD in June 2025 (here) with Prosus expressing ambitions to become

the largest European-based internet company, focusing on lifestyle e-commerce across

Europe, India, and Latin America; and 3) improving market sentiment for value

crystallization of key portfolio assets and a high level of synergies anticipated through AI-

driven innovation and transformation, with a potential value unlock in assets, to support a

further narrowing of the PRX and NPN discounts to NAV.

Valuation

Our SOTP-based price target for Prosus is derived from the sales multiples and from J.P.

Morgan's price targets for the listed assets in which Prosus has a stake. We benchmark our

valuation against global peers for internet assets. We also apply a 25% conglomerate

discount to the Prosus valuation.

Risks to Rating and Price Target

Downside risks:

Increased emerging market risk aversion.