Buy/Sell/Hold is compiled from the top gainers and losers of the previous week, as well as various analyst reports. Here is our take on stocks to Buy/Sell/Hold next week.
AIICO Insurance Plc: HOLD
Latest Results: Results for the half year ended June 2018 show that gross premium increased from N14.8 billion in 2017 to N19.2 billion in 2018. Profit before tax jumped from N1.1 billion in 2017 to N2.1 billion in 2018. Profit after tax also jumped from N988 million in 2017 to N1.9 billion in 2018.
Pricing
Current Share Price: N0.85
Price to Earnings Ratio: 3.02x
Price to Book Ratio: 0.45
One Year Return: 67.01%
Year To Date Return: 63.46%
External View: None
Our View
In Nairametrics’ opinion, AIICO Insurance is a HOLD. The stock this week hit a year high of N0.99 but has dipped a bit as investors take profit. AIICO could witness some more upside in the week to come, as the proposed private placement values the company at N1.20 per share.
PZ Cussons Nigeria Plc: SELL
Latest Results: Results for the twelve months ended May 2018 show revenue increased from N78.2 billion in 2017 to N80.5 billion in 2018. Profit before tax fell sharply from N4.8 billion in 2017 to N2.3 billion in 2018.
Profit after tax also dropped from N3.6 billion in 2017 to N1.9 billion in 2018.
Pricing
Current Share Price: N13.50
Price to Earnings Ratio: 12.79x
Price to Book Ratio: 1.30
One Year Return: -46.88%
Year To Date Return: -34.47%
Analysts View
Analysts at FBNQuest have an ‘Underperform’ rating on the stock. They have a target price of N19, which represents a target upside of 27.3% above the stock’s price of N15 as at when the report was prepared.
Our View
PZ Cussons Nigeria is a SELL in Nairametrics’ opinion. The company’s full-year results for the period ended May 2018 show a massive decline, compared to the prior year.
The factors behind the poor result (namely high costs, intense competition and stifled disposable income) are still prevalent. Investors would be better off waiting for the first quarter results to have better clarity.
Flour Mills of Nigeria Plc: HOLD
Latest Results: Results for the first quarter ended June 2018 show that revenue dropped from N148 billion in 2017 to N133 billion in 2018. Profit before tax dropped from N6.1 billion in 2017 to N5.2 billion in 2018. Profit after tax dropped from N4.5 billion in 2017 to N3.6 billion in 2018.
Pricing
Current Share Price: N21.50
Price to Earnings ratio: 5.22x
Price to Book ratio: 0.59
One Year return: -15.93%
Year to Date: -25.86%
Analyst View
Analysts at FBNQuest have an ‘Overperform’ rating on the stock. They have a target price of N31, indicating an expected upside of 27.7% from the stock’s price of N24.3, as at when the report was prepared.
Our View
Flour Mills is a HOLD in Nairametrics’ opinion. The stock is 43.4% below its year high. Investors would be better off holding on for a further drop in price, before taking a position.