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.
Diamond Bank: HOLD
Recent Results
Results for the nine months ended September 30, 2018 show that gross earnings for the group dropped from ₦143 billion in 2017 to ₦142 billion in 2018.
Profit before tax also fell from ₦4.7 billion in 2017 to ₦3.08 billion in 2018. Profit after tax dipped from ₦3.9 billion in 2017 to ₦1.6 billion in 2018.
Price Information
Current Share Price: N2.11
Price Earnings Ratio: *None
Price to Book Ratio: 0.22
One Year Return: -33.23%
Year to Date Return: -3.2%
External View
None
Our View
Diamond Bank is a HOLD in Nairametrics’ opinion. While the stock is down 3.2% year to date, it is trading far below the N3.13 mark which Access valued the stock.
Lafarge Africa: SELL
Recent Results
Results for the nine months ended September 30, 2018, show that revenue increased from N223 billion in 2017 to N234 billion in 2018.
The firm made a loss before tax of N14.3 billion in 2018, as against a profit before tax of N1 billion for the corresponding period of 2017.
Price Information
Current Share Price: N12.55
Price to Earnings Ratio: None
Price to Book Ratio: 0.8
One Year Return: -75.25%
Year to Date: 0.8%
External View
Analysts at FBNQuest have a ‘Neutral’ recommendation on the stock. They have a target price of N21.3, which represents a potential upside of 75.1% from the stock’s price of N12.3, as at when the report was prepared.
Analysts at United Capital have a ‘Hold’ recommendation on the stock. They have a one-year target price of N13.7 which represents an 11.8% potential upside from the stock’s price of N12.3, as at when the report was prepared.
Our View
Nairametrics retains its SELL recommendation placed on Lafarge Africa last week.
Seplat: HOLD
Recent Results
Revenue jumped from ₦85.1 billion in 2017 to ₦173 billion in 2018. This represents a 103% increase year on year. Profit before tax stood at ₦65 billion in 2018 compared to a loss before tax of ₦650 million in 2017.
Profit after tax stood at ₦27.9 billion in 2018 compared to a loss of ₦1.6 billion made in 2017.
Price Information
Current Share Price: N576
Price to Earnings Ratio: 2.52X
Price to Book ratio: 0.59
One Year Return: -10.14%
Year to Date Return: -10%
External View
Analysts at United Capital have a ‘Buy’ recommendation on the stock. They have a 12-month target price of N876, which represents a 52.1% potential upside from the stock’s price of N576, as at when the report was prepared.
Analysts at FBNQuest have an ‘Overperform’ rating on the stock. They have a target price of N971 which represents a potential upside of 68.6% from the stock’s price of N576, as at when the report was prepared.
Our View
Seplat is a HOLD in Nairametrics’ opinion. While the stock is currently trading close to its 52-week low, investors would be better off entering the stock after it would have been marked down for dividend payment in a few months.
This week, the company released a notice informing the NSE of its board meeting which will hold at the end of the month.
This could be an indication that its results could be released, either sometime in February or immediately after the elections.