Buy, Sell, or Hold comprises of stocks from the top gainers and losers of the previous week, as well as various analyst reports.
Seplat Petroleum: BUY
Latest results: Results for the half year ended June 2018 show that revenue increased from N40.3 billion in 2017 to N104.7 billion in 2018. The company made a profit before tax of N37 billion, as against a loss before tax of N8 billion recorded in the corresponding period of 2017. Profit after tax stood at N14 billion, as against a loss after tax of N8.4 billion recorded in 2017.
Pricing
Current Share Price: N650
Price-earnings ratio: 2.99x
Price to book ratio: 0.69
YTD return: 3.80%
One year return: 41.67%
Latest information
Last week, the company released its half-year results and held an investor conference call.
External view
Analysts at FBNQuest have an ‘Overperform’ rating on the stock. They have a target price of N971 per share, a 36% upside from the stock’s share price as at when the report was updated.
Our view
Seplat is a BUY in Nairametrics’ view. The stock is currently trading at a PE ratio far lower than the average PE ratio on the Nigerian Stock Exchange, as well as its peers on the bourse. The stock is up 3.80% year to date, leaving room for some upside.
Crude oil prices are also forecast to remain within their current range in the medium term, while the Niger Delta has been relatively peaceful.
International Breweries: HOLD
Latest results: Results for the half year ended June 2018 show that revenue increased from N17 billion in 2017 to N53 billion in 2018.
Pricing
Current share price: N30.5
Price to earnings ratio: 32.46x
Price to book ratio 7.38
One year return: -8.82%
Year to date: 43.12%
External view
Analysts at FBNQuest are Neutral on the stock. They have a target price of N47.4, an expected 55.4% upside from the stock’s price of N30.5 as at when the report was prepared.
Our view
International Breweries is a HOLD in Nairametrics’ opinion. The stock is currently trading at a year low and could dip further if bearish sentiments in the market persist.
While the company is currently recording losses, it is clawing at market share from its competitors in the space namely Guinness and International Breweries. Investors would be better off waiting for a further dip in the stock’s price before taking a position.
CAP Plc: HOLD
Latest Results: Results for the six months ended June 2018 show that revenue increased from N3.4 billion in 2017 to N3.8 billion in 2018. Profit before tax increased from N1 billion in 2017 to N1.3 billion in 2018. Profit after tax rose from N696 million in 2017 to N917 million in 2018.
Pricing
Current share price: N28.25
Price-earnings ratio: 13.25x
Price to book ratio: 8.8
One year return: -14.46%
Year to date: -16.62%
Latest Information
The company, in a notice sent to the Nigerian Stock Exchange (NSE) announced the resignation of its Chairman, Larry Ettah. Ettah was the immediate past Group Managing Director of UAC of Nigeria Plc, CAP’s parent company.
External view: NONE
Our view
CAP Plc is a HOLD in Nairametrics’ view. While the stock is currently trading at a year low of N28.25, bearish sentiments at the moment could lead to it falling further. Investors can take a position once this abates.
