Buy/Sell/Hold: Fix your eyes on these stocks for next week

Stocks on our Buy/Sell/Hold list are picked from the top gainers and losers of the previous week as well as various analyst reports.

Unilever: SELL

Latest Results: Results for the half year ended June 2018 show that revenue increased from N42.6 billion in 2017 to N48.1 billion in 2018. Profit before tax also increased from N4.8 billion in 2017 to N7.5 billion in 2018. Profit after tax jumped from N3.6 billion in 2017 to N5.7 billion in 2018.

Pricing

Current Share Price: N52.90
Price to Earnings Ratio: 28.77X
Price to Book Ratio: 3.79
One Year Return: 16.74%
Year To Date Return: 27.8%

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External View

Analysts at United Capital have a HOLD recommendation on the stock. They have a one-year target price of N56.3, which is 2.4% above the stock’s price of N55, as at when the report was prepared.

Our View

Unilever Plc is a SELL in Nairametrics’ opinion. The stock is currently trading at a PE ratio twice that of its peer, PZ Cussons Nigeria. Bearish sentiments on the Exchange mean that the stock could witness some depreciation.

Dangote Cement: HOLD

Latest Results: Results for the half year ended June 2018 show that revenue increased from N412 billion in 2017 to N482 billion in the corresponding period of 2018. Profit before tax increased from N155 billion in 2017 to N185 billion in 2018. Profit after tax also moved from N109 billion in 2017 to N113 billion in 2018.

Pricing

Current Share Price: N230
Price Earnings Ratio: 23.47X
Price to Book Ratio: 5.47
One Year Return: 10.68%
Year to Date Return: 0%

External View

Analysts at United Capital have a BUY recommendation. They have set a one-year target price of N258.4 which indicates an expected upside of 17.5% from the stock’s price of N220, as at when the report was prepared.

Our View

Dangote Cement is a HOLD in Nairametrics’ opinion. The stock is yet to decline significantly to justify taking a position as it is currently trading at 10.58% below its year high of N258. Investors would be better off waiting for a further decline before taking a position.