Stocks on our Buy/Sell/Hold list are drawn from the top gainers and losers of the prior week, as well as various analysts’ reports.
Dangote Cement Plc: HOLD
Latest Results:
Results for the third quarter ended September 30, 2018 show that revenue increased from ₦603 billion in 2017 to ₦685 billion in 2018. Profit before tax increased from ₦220 billion in 2017 to ₦247 billion in 2018. Profit after tax increased from ₦154 billion in 2017 to ₦158 billion in 2018.
Price Information
Current Share Price: ₦200.50
Price to Earnings Ratio: 21.88X
Price to Book Ratio: 4.44
Year to Date Return: -12.83%
One Year Return: -4.59%
External View
Analysts at FBN Quest have an ‘Overperform’ rating on the stock. They have a target price of ₦283.80. This represents a 35.1% increase from the stock’s price of ₦210, as at when the report was prepared.
Analysts at United Capital have a target price of ₦258.40. This represents a 23% increase from the stock’s price of ₦210, as at when the report was prepared.
Our View
Dangote Cement is a HOLD in Nairametrics’ opinion. Year to date, the stock is down 12.83%. The stock would have declined 50% year to date, for it to warrant entry.
Access Bank: HOLD
Latest Results:
Results for the third quarter ended September 30, 2018, show that interest income increased from ₦245 billion in 2017 to ₦274 billion in 2018. Profit before tax dropped from ₦72 billion in 2017 to ₦70 billion in 2018. Profit after tax rose from ₦56.3 billion in 2017 to ₦62.9 billion in 2018.
Price Information
Current Share Price: ₦7.95
Price to Earnings ratio: 3.33X
Price to Book ratio: 0.48
Year to Date Return: -23.92%
One Year Return: 14.03%
External View
Analysts at FBNQuest have a ‘Neutral’ rating on the stock. They have a target price of ₦12.3 on it. This represents a 48.6% potential upside from the stock’s price of ₦8.30, as at when the report was prepared.
Analysts at United Capital have a Buy rating on the stock. They have a 12-month target price of ₦10.60. This represents a 27.7% upside from the stock’s price of ₦8.3 as at when the report was prepared.
Our View
Access Bank is a HOLD in our opinion. Year to date, the stock is down 23.92% and would have to decline by 50% year to date to warrant entry into the stock.
While the stock is trading at the lowest PE ratio among the FUGAZ banks, it could dip below its year low of ₦7.6 if strong bearish sentiments arise.
Cutix Plc: HOLD
Latest Results:
Results for the first quarter ended July 2018 show that revenue increased from ₦1.2 billion in 2017 to ₦1.3 billion in 2018. Profit before tax increased from ₦160 million in 2017 to ₦171 million in 2018. Profit after tax also increased from ₦104 million in 2017 to ₦111 million in 2018.
Price Information
Current Share Price: ₦2.03
Price to Earnings Ratio: 3.96X
Price to Book: 1.2
Year to date: 1%
One Year Return: 5.61%
Analyst View: None
Our View
Cutix is a HOLD in Nairametrics’ opinion. In numerical terms, the stock has been marked down for a 1 for 1 split and a ₦0.20 dividend and is trading close to its year low of ₦1.85. Investors would be better off waiting for a further decline before taking a position.
