Bidcorp (BID ZA)

SUMMARY | Position: LONG | Upside target: R480.00 | Reward / risk ratio: 3.3 | Recommended stop-loss: R405.00 | RECOMMENDATION: BUY

Bid Corporation, commonly known as Bidcorp, is an international broad-line foodservice group distributing a wide range of food items as well as related products and services. It has presence in developed and developing economies on five continents.

The industry enjoys relatively high barriers to entry as significant capital is required to build logistics infrastructure, but human capital is required in terms of delivery know-how.

Technically, a price bouncing from its 200-day simple moving average makes the share attractive as …