Stocks on our Buy/Sell/Hold list are picked from the top gainers and losers of the prior week as well as various analyst reports
Presco Plc: HOLD
Recent Results
Results for the nine months ended September 30, 2018 show revenue dipped slightly from N16.9 billion in 2017 to N16.2 billion in 2018. Profit before tax also 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: N75
Price to Earnings Ratio: 2.96X
Price to Book Ratio: 0.94
Year to Date Return: 17.1%
One Year Return: 10.06%
External View
Analysts at United Capital have a Buy recommendation on the stock. They have a 12-month target price of N74.5 per share, which represents a potential upside of 24.2% from the stock’s price of N60 as at when the report was prepared.
Analysts at FBN Quest have a Neutral rating on the stock. They have a target price of N66 per share. This indicates a potential downside of 12% from the stock’s price of N75 as at when the report was prepared.
Our View
Presco Plc is a HOLD in Nairametrics opinion, despite the stock trading at a lower PE ratio compared to its peer Okomu Oil palm. It is also trading lower than the average PE ratio on the NSE.
The stock is also up 17.19% year to date, outperforming the Nigerian Stock Exchange which is up 0.93%.
International Breweries: HOLD
Recent results
Results for the nine months ended September 30, 2018 show revenue increased from N36.5 billion in 2017 to N83.3billion in 2018. Loss before tax increased from 3.1 billion in 20177 to N9.1 billion in 2018
Price Information
Current Share Price: N26.25
Price to Earnings Ratio: 2.96X
Price to Book Ratio: 6.4
Year to Date Return: -13.9%
One Year Return: -53.95%
External View
Analysts at United Capital have a Buy recommendation on the stock. They have a 12 month target price of N38.1 which represents a potential upside of 45% from the sock’s price of N26.3 as at when the report was prepared.
Analysts at FBN Quest have a Underperform rating on the stock. They have a target price of N28.2 which represents a potential upside of 7.5% from the stock’s price of N26.3 as at when the report was prepared.
Our View
International Breweries is a HOLD in Nairametrics opinion, despite the likelihood of the full year 2018 loss.
The company has gradually clawed market share from its more established competitors Nigerian Breweries and Guinness Nigeria. In the medium to long term, the move will pay off. The stock is also yet to decline significantly to warrant an entry.
Disclaimer
Please consult a financial adviser before making an investment decision.
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