Buy/Sell/Hold, Guaranty Trust Bank, Nigeria Stock Excahnge

Stocks on our Buy Sell Hold list are picked from the top gainers and losers of the prior week, as well as various analysts’ reports.

Total Nigeria Plc: HOLD

Recent Results

Results for the third quarter ended September 2018 show revenue increased from N221 billion in 2017 to N226 billion in 2018. Profit before tax increased from N9.6 billion in 2017 to N11.4 billion in 2018. Profit after tax also rose from N5.9 billion in 2017 to N7.6 billion in 2018.

Price information

Current Share Price: N195                                                        Price to Earnings Ratio: 6.63X
Price to Book Ratio: 2.1
Year to Date Return: -3.9%
One Year Return: -7.93%

External View

Analysts at United Capital have a ‘Hold’ recommendation on the stock. They have a 12-month target price of N261.4. This represents a potential upside of 27.5% from the stock’s price of N205 as at when the report was prepared.

Analysts at FBNQuest have a ‘Neutral’ recommendation on the stock. They have a target price of N279 per share. This represents a potential upside of 36% from the stock’s price of N205 as at when the report was prepared.

Our View

Total Nigeria Plc is a HOLD in Nairametrics’ opinion. The stock is currently trading at a PE ratio much lower than the average PE on the NSE. It has also not declined sufficiently to warrant entry.

Transcorp Plc: Hold

Recent Results: The company released its full-year 2018 results a few weeks ago. Revenue increased from N80 billion in 2017 to N104 billion in 2018. Profit before tax jumped from N12.3 billion in 2017 to N22.4 billion in 2018. Profit after tax also rose from N10.6 billion in 2017 to N20.6 billion in 2018.

The company also declared a N0.03 (three kobo) dividend.

Price Information

Current Share Price: N1.45

Price to Earnings Ratio: 1.72X
Price to Book Ratio: 0.86
Year to Date Return: 9.8%
One Year Return: -31.76%

External View

None

Our View

Transcorp Plc is a HOLD in Nairametrics’ opinion. The stock is trading at a much lower PE ratio, compared to peers in the conglomerate space such as ???

Sterling Bank Plc: Hold

Recent Results

Results for the nine months ended September 30, 2018, show that interest income increased from N78.6 billion in 2017 to N93.5 billion in 2018. Profit before tax rose from N6.5 billion in 2017 to N8.5 billion in 2018. Profit after tax also increased from N5.9 billion in 2017 to N8.2 billion in 2018.

Price Information

Current Share Price: N2.50

Price to Earnings Ratio: 6.57X
Price to Book Ratio: 0.86
Year to Date Return: 31.6%
One Year Return: 35.35%

External View

Analysts at CSL have a ‘Buy’ recommendation on the stock. They have a target price of N2.8, which represents a 10% upside from the stock’s price of N2.5 as at when the report was prepared.

Our View

Sterling Bank is a HOLD in Nairametrics’ view, upgraded from our prior SELL recommendation. The coming week will be a key one for equities, depending on the outcome of the elections.

While generally there is a forecast of the possibility of a rally post-election, the chance of unrest still remains. Should that happen, markets could dip.

Coronation Research
Onome Ohwovoriole has a degree in Economics and Statistics from the University of Benin and prior to joining Nairametrics in December 2016 as Lead Analyst had stints in Publishing, Automobile Services, Entertainment and Leadership Training. He covers companies in the Nigerian corporate space, especially those listed on the Nigerian Stock Exchange (NSE). He also has a keen interest in new frontiers like Cryptocurrencies and Fintech. In his spare time, he loves to read books on finance, fiction as well as keep up with happenings in the world of international diplomacy. You can contact him via onome.ohwovoriole@nairametrics.com

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