Buy/Sell/Hold is picked from the top gainers and losers of the previous week, and various analysts’ reports.
Fidelity Bank Plc: HOLD
Latest Results
Results for the half year ended June 2018 show that gross earnings increased from N85.8 billion in 2017 to N88.9 billion in 2018.
Profit Before tax increased from N10.2 billion in 2017 to N13.1 billion in 2018. Profit after tax also increased from N9 billion in 2017 to N11.8 billion in 2018.
Price Information
Current Share Price: N1.93
Price to Earnings Ratio: 1.42X
Price to Book Ratio: 0.30
Year to Date Return: -21.54%
One Year Return: 45.21%
External View
Analysts at United Capital have a BUY recommendation on the stock. They have a target price of N2.80, which represents a potential upside of 54.7% from the stock’s price of N1.80, as at when the report was prepared.
Analysts at FBNQuest have a ‘Neutral’ rating on the stock. They have a target price of N3.00, which represents a potential upside of 75% from the stock’s price of N1.90 as at when the report was prepared.
Our View
Fidelity Bank is a HOLD in Nairametrics’ opinion. While the stock is trading quite cheaply, a further decline is possible in view of current market sentiments. Investors would be better off with a 50% decline in price, before taking a position.
Stanbic IBTC: HOLD
Latest Results
Results for the half year ended June 2018, show that gross earnings increased from N97.1 billion in 2017 to N114 billion in 2018. Profit before tax jumped from N29.1 billion in 2017 to N50 billion in 2018. Profit after tax also increased from N24.1 billion in 2017 to N43 billion in 2018.
Price Information
Current Share Price: N45
Price to Earnings Ratio: 6.97X
Price to Book Ratio: 2.18
Year to Date Return: 8.43%
One Year Return: 15.86%
External View: None
Our View
Stanbic IBTC is a HOLD in our opinion, as it is up 8.43% year to date. Investors would be better off waiting for a dip in price before taking a position.
Cadbury Nigeria Plc: SELL
Latest Results
Results for the half year ended June 2018 show that revenue increased from N16.2 billion in 2017 to N17.5 billion in 2018. Loss before tax fell from N766 million in 2017 to N423 million in 2018.
Price information
Current Share Price: N10.30
Price to Earnings Ratio: 30.59X
Price to Book Ratio: 1.70
Year to Date Return: – 34.27%
One year return: 0.31%
External View: None
Our View
Cadbury is a SELL in Nairametrics’ opinion. Not only is the stock trading at over two times the average PE ratio on the NSE, but H1 2018 results are also poor and may be an indication of poor full-year results.
The poor fundamentals, in the last few years, have led to most analysts removing it from their coverage.
Newrest ASL Nigeria Ltd: HOLD
Latest Results
Results for the half year ended June 2018 show that revenue dropped from N2.7 billion in 2017 to N2.5 billion in 2018. However, profit before tax jumped from N197 million in 2017 to N631 million in 2018.
Price Information
Current Share Price: N6.00
Price to Earnings Ratio: 3.35X
Year to Date Return: 0.84%
One Year Return: -16.80%
External View: None
Our View
Newrest ASL is a HOLD in Nairametrics’ opinion. The stock is trading at a year high of N6.00. Investors would be better off waiting for a decline before taking a position.
