Stocks on our Buy/Sell/Hold list are drawn from the gainers and losers of the previous week as well as various analyst reports.
AIICO Insurance: HOLD
Recent Results:
Results for the nine months ended September 30, 2018 show that gross premium written increased from N23.5 billion in 2017 to N27.6 billion in 2018. Profit before tax, however, fell from N2.7 billion in 2017 to N2.1 billion in 2018. Profit after tax also declined from N2.4 billion in 2017 to N1.8 billion in 2018.
Price Information
Current Share Price: N0.69
Price to Earnings Ratio: 11.17X
Price to Book Ratio: 0.3
Year to Date Return: 32.69%
One Year Return: 35.57%
External View
None
Our View
AIICO Insurance is a HOLD in Nairametrics’ opinion. The stock is trading close to its year low of N0.59, and could touch that mark if bearish sentiments persist in the market.
The company is yet to state if it will proceed with a proposed N5.28 billion private placement, especially in light of the scrapping of the policy by the National Insurance Commission (NAICOM).
Investors keen on taking positions would be better off waiting for further clarity regarding this.
FBN Holdings: HOLD
Recent results:
Results for the third quarter ended September 30, 2018 show interest income dropped from N356 billion in 2017 to N337 billion in 2018. Profit before tax dropped from N55.4 billion in 2017 to N51.3 billion in 2018. Profit after tax dropped from N45.8 billion in 2017 to N44.9 billion in 2018.
Price Information
Current Share Price: N7.20
Price Earnings Ratio: 5.15X
Year to Date Return: -18.18%
One Year Return: -19.05%
External Views
Analysts at United Capital have a ‘Buy’ recommendation on the stock. They have a 12 month target price of N10.7. This represents a potential upside of 40.8%.
Analysts at Afrinvest have a ‘Buy’ recommendation on the stock. They have a 12 month target price of N9.89, which represents a potential upside of 30.1% from the stock’s price of N7.60 as at when the report was prepared.
Our View
FBN Holdings is a HOLD in our opinion. The stock is currently trading at 6.7% above its year low of N6.75, and could dip further if bearish sentiments persist in the market.
CCNN: HOLD
Recent results:
Results for the half year ended June 2018 show that revenue increased from N8.5 billion in 2017 to N12 billion in 2018. Profit before tax jumped from N1.3 billion in 2017 to N3.6 billion in 2018. Profit after tax also increased from N1 billion in 2017 to N2.6 billion in 2018.
Price Information
Current Share Price: N15.70
Price Earnings Ratio: 4.11X
Year to Date Return: 65.26%
One Year Return: 73.21%
External Views
None
Our View
Cement Company of Northern Nigeria is a HOLD in Nairametrics’ opinion, as the stock is up 65.26% year to date. Investors may have to wait a while before taking position, as the stock is trading at nearly twice its year low of N9.50.
