Guinness Nigeria

There you have it, ARM have placed a ‘SELL’ on Guinness Stock. I have blogged severally about Guinness Stock (check related post below) placing a red ink on their results. I still believe Guinness can pull through this rough patch though but then, a lot depends on how it manages it cost amidst stiff competition. Its a no brainer that they place a Sell on the stock. The share price is just too high….a N190 share price is a sure buy for me even though ARM recommends N208.13

Guinness still expensive in our view

 Despite adjustments to our model, our fair value estimate remains virtually unchanged at N208.13 bolstered by the contribution of the increasingly influential relative valuation component of our model with a rise in average peer multiples to 25.64x from 23.61x. Guinness now trades at a 33% premium to this estimate on a current P/E of 31.22x (forward P/E of 34.2x). We maintain our SELL rating on the stock.  ARM.

You can get the full report here==>> 

Download (PDF, 76B)

Guinness Nigeria Plc share price closed at N280 today.

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