Stocks on our Buy/Sell/Hold list are picked from the gainers and losers of the previous week, as well as various analyst reports.
PZ Cussons Nigeria: SELL
Recent results
Results for the first quarter ended August 2018 show that revenue fell from N18.5 billion in 2017 to N15.8 billion in 2018. The company’s losses worsened year on year from N181 million in 2017 to N204 million in 2018.
Price Information
Current Share Price: N11.40
Price to Earnings ratio: 11.89X
Price to Book ratio: 1.08
Year to date return: -44.46%
One Year return: -48.19%
External View
Analysts at United Capital have a Buy rating on the stock. They have a one year target price of N20.6. This represents a potential upside of 93.4% from the stock’s price of N10.7 as at when the report was prepared.
Analysts at FBNQuest have an underperform rating on the stock. They have a target price of N18.7. This represents a potential upside of 75.7% from the stock’s price of N9 as at when the result was prepared.
Our View
Nairametrics maintains its SELL recommendation on PZ Cussons, despite the stock rebounding from a low. The company has yet to state clear strategies to counter its poor string of results.
Presco: HOLD
Recent results
Results for the third quarter ended September 30, 2018, show that revenue fell from N16.9 billion in 2017 to N16.2 billion in 2018. Profit before tax dropped from N7.9 billion in 2017 to N7.4 billion in 2018. Profit after tax also dipped from N5.3 billion in 2017 to N5.2 billion in 2018.
Price Information
Current Share Price: N62.15
Price to Earnings ratio: 2.45X
Price to Book ratio: 0.78
Year to date return: -9.27%
One Year return: -5.83%
External View
Analysts at FBNQuest have a Neutral rating on the stock. They have a target price of N76.9, which represents a potential upside of 23.7% from the stock’s price of N62.2 as at when the report was prepared.
Analysts at United Capital have a 12 month target price of N76.9. This represents a potential upside of 23.7% from the stock’s price of N62.2 as at when the report was prepared.
Our View
Presco Plc is a HOLD in Nairametrics opinion, as there remains sufficient room for decline in the current bear market. The stock is down 9.27% year to date, much more lower than the All Share Index which is down 19%.
11 Plc: HOLD
Recent results
Results for the third quarter ended September 30, 2018 show revenue jumped from N88 billion in 2017 to N125 billion in 2018. Profit before tax jumped from N6.8 billion in 2017 to N11.6 billion in 2018. Profit after tax also increased from N4.5 billion in 2017 to N7.8 billion in 2018.
Price Information
Current Share Price: N160
Price to Earnings ratio: 5.34X
Price to Book ratio: 1.78
One Year return: 5.09
Year to date return: -17.78%
External Views
Analysts at FBNQuest have a Neutral rating on the stock. They have a target price of N292.4, which represents a potential upside of 77.2% from the stock’s price of N165 as at when the report was prepared.
Analysts at United Capital have a Buy rating on the stock. They have a one year target price of N184.5. This represents a potential upside of 11.8% from the stock’s price of N165 as at when the report was prepared.
Our View
11 Plc is a Hold in Nairametrics opinion, as the stock is currently trading at par with its peers such as Total Nigeria, which is trading at 6.8 times earnings.
Investors keen on taking a position, may have to wait for a further decline in price before doing so.
