Nigerian stocks, Buy Sell Hold, results

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

UACN Plc: SELL

Latest Results: Results for the half year ended June 2018 show that revenue dropped from N47.3 billion in 2017 to N36.9 billion in 2018. However, profit before tax increased from N1.8 billion in 2017 to N2.1 billion in 2018. Profit after tax also increased slightly from N1.1 billion in 2017 to N1.3 billion in 2018.

Pricing

Current Share Price: N11.85
Price Earnings Ratio: 21.10x
Price to Book Ratio: 0.51
Year to Date: -16.24%
One Year Return: -29.88%

External View

Analysts at FBNQuest have a ‘Neutral’ rating on the stock. They have a target price of N14.3, which is 21% higher than the stock’s price of N11.8 as at when the report was prepared.

Our View

UACN is a SELL in Nairametrics’ opinion, as the stock is currently trading at nearly four times higher than its peer, Transcorp Plc, which is trading at 6.5 times earnings. It is also trading nearly twice the average PE ratio on the NSE.

Forte Oil: HOLD

Latest Results: Results for the half year ended June 2018 show that revenue increased from N46.7 billion in 2017 to N61 billion in 2018. Profit before tax dropped from N697 million in 2017 to N390 million in 2018. Profit after tax also dropped from N333million in 2017 to N96.5 million in 2018.

Pricing

Current Share Price: N20.05
Price Earnings Ratio: 8.18X
Price to Book Ratio: 0.51
Year to Date: -53.89%
One Year Return: -59.82%

External View: None

Our View

Forte Oil is a HOLD in our opinion even though it has declined over 50% from its year high and year to date. We await Q3 results for more clarity.

AXA Mansard: HOLD

Latest Results: Results for the half year ended June 2018 show that gross premium written increased from N17.9 billion in 2017 to N23.5 billion in 2018. Profit before tax, however, dropped from N2.3 billion in 2017 to N1.8 billion in 2018. Profit after tax also dropped from N2.1 billion in 2017 to N1.5 billion in 2018.

Pricing

Current Share Price: N1.95
Price Earnings Ratio: 10.18X
Price to Book Ratio: 1
Year to Date: 1.04%
One Year Return: -0.01%

External View: None

Our View

In Nairametrics’ opinion, AXA Mansard is a HOLD. The stock has shown little decline amidst a bear market.

Investors desirous of entry would be better off waiting for a significant decline before taking position, as the stock is trading 33.6% below its year high.

Onome Ohwovoriole has a degree in Economics and Statistics from the University of Benin and prior to joining Nairametrics in December 2016 as Lead Analyst had stints in Publishing, Automobile Services, Entertainment and Leadership Training. He covers companies in the Nigerian corporate space, especially those listed on the Nigerian Stock Exchange (NSE). He also has a keen interest in new frontiers like Cryptocurrencies and Fintech. In his spare time, he loves to read books on finance, fiction as well as keep up with happenings in the world of international diplomacy. You can contact him via onome.ohwovoriole@nairametrics.com

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