PROSUS/NASPERS: Increasing OLX valuation; Updating valuation for Tencent share price moves

On 26 October, Prosus held a bullish OLX presentation discussing how it is incorporating AI into its strategy to deliver faster growth than peers. OLX's core categories, including motors, real estate and jobs, account for over 70% of revenues and are growing 19% yoy versus a 9% peer median. OLX has invested more than $200mn in AI since 2018 and has deployed over 6,100 internal AI agents. We increase our OLX valuation from 10.9x EV/EBITDA on FY27 estimates to 12.9x, a 15% premium to peers. Since our 12 October publication, Tencent's share price has fallen 9%, so we update our Prosus/Naspers SOTP valuations, valuing Prosus' Tencent stake at $102bn or €42 per share, versus $112bn or €46 previously. Using GSe private asset valuations, Prosus trades at a 38% NAV discount, in line with its long-term average, while Naspers trades at a 46% discount, wider than the 42% average. We lower our 12-month price target for Prosus to €37.0 from €40.0 and for Naspers to ZAR813 from ZAR863, reiterating N