Buy/Sell/Hold is selected from the top gainers and losers of the previous week, as well as various analysts’ reports.

Forte Oil: HOLD

Recent Results

Results for the nine months ended September 30, 2018, show that revenue increased from N68 billion in 2017 to N94.8 billion in 2018.

Bua group

Profit before tax stood at N375 million in 2018 as against a loss before tax of N474 million recorded in 2017. Profit after tax (for the period) rose from N5.6 billion in 2017 to N9.0 billion in 2018.

Price Information

Current Share Price: N25.95
Price to Earnings Ratio: 10.63X
Price to Book Ratio: 1.97
Year to Date Return: 40.32%
One Year Return: -40.32%

External View

Analysts at ARM Securities have a ‘Buy’ rating on the stock. They have a fair value estimate of N34.5 which amounts to a potential upside of 42.5% from the stock’s price of N24.1 as at when the report was prepared.

Our View

Forte Oil is a HOLD in Nairametrics’ opinion. The stock is down 40.32% year to date, leaving room for some further downside if bearish markets persist.

The stock is also trading at a price earnings ratio higher than other listed major marketers such as Total and 11 Plc, which are trading at 5.61 times earnings respectively.

Union Bank: SELL

Recent Results

Results for the nine months ended September 30, 2018 show that gross earnings increased from N109 billion in 2017 to N122 billion in 2018. Profit before tax also rose from N12.9 billion in 2017 to N14.8 billion in 2018. Profit after tax increased from N12.4 billion in 2017 to N14.6 billion in 2018.

Price information

Current Share Price: N5.60
Price to Earnings Ratio: 10.6X
Price to Book Ratio: 0.56
One Year Return: -24.93%
Year to Date Return: -28.21%

Coronation Research

External View

Analysts at Afrinvest Securities have a ‘Reduce’ rating on the stock. They have a one year target price of N6.05, which is higher than the stock’s price of N6.10 as at when the report was prepared. This indicates a potential downside of 0.8%.

Our View

Union Bank is a HOLD in Nairametrics’ opinion, though the stock is trading at a price to earnings ratio of nearly twice tier two peers such as Sterling Bank, which is trading at 4.76 times earnings and FCMB, which is trading at 2.25 times earnings.

Livestock Feeds: SELL

Recent Results

Results for the nine months ended September 30, 2018 show that revenue fell from N8.1 billion in 2017 to N5.5 billion in 2018. Loss before tax increased from N261 million in 2017 to N474 million in 2018.

Price Information

Current Share Price: N0.47
Price Earnings Ratio: *None
Price to Book Ratio: 0.86
One Year Return: -45.35%
Year to Date Return: -43.37%

External View

None

Our View

Livestock Feeds is a SELL in Nairametrics’ opinion. The company, from all indications, is likely to record a loss for the 2018 financial year.

It is also trading at a 5-year low of N0.47 and could decline further if bearish sentiments become overwhelmingly strong on the Nigerian Stock Exchange.

2 COMMENTS

  1. Could you please elucidate on why the PAT of Forte oil is way greater than its PBT. One would think that after tax, profit would diminsh not vice versa.

    Thanks.

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