Total Nigeria Plc hit a major milestone on Tuesday after its share price closed above ₦300 and an implied market valuation of about ₦103 billion for the first time ever. Flash back a few months ago, we ran an article suggesting that Total share price could be valued at about ₦500 per share following the release of its half year results. At the time, Total share price was about ₦185.
The share price is still about ₦200 away from our target price but we can’t bet against it reaching such heights. At a price earnings ratio os about 9x, Total is still relatively cheap especially if it beats last year’s earnings per share by as much as 60%.
Investors will probably be waiting eagerly for their third quarter results which could be released anytime soon. If the results looks as good as Q1 and Q2 then we could closer to our ₦500 forecast.