Stocks on our Buy/Sell/Hold list are picked from the top gainers and losers of the previous week as well as various analysts’ reports.
Here are the picks for next week’s trading session.
UBA: HOLD
Recent Results
Results for the 2018 financial year show that gross earnings increased from N461 billion in 2017 to N464 billion in 2018. Profit before tax increased from N104.2 billion in 2017 to N106.7 in full-year 2018. UBA’s profit after tax also increased from N77.5 billion in 2017 to N78.6 billion.
Price Information
Current Share Price: N6.45
Price to Earnings Ratio: 2.93X
Year to Date Return: -16.23%
One Year Return: – 33.18%
External Views
Analysts at FBNQuest have an ‘Overperform’ rating on the stock. They have a target price of N12.9, which represents a potential return of 107.4% from the stock’s price of N6.3, as at when the report was prepared.
Analysts at Afrinvest have a BUY rating on the stock. They have a 12-month target price of N13.09, which represents a potential upside of 111% from the stock’s price of N6.20 as at when the report was prepared.
Our View
UBA is a HOLD in Nairametrics’ opinion. Though the stock is trading far cheaper than the average PE ratio on the Nigerian Stock Exchange, and lower than some of its tier one peers (Zenith Bank is trading at a PE ratio of 3.5 times earnings, Guaranty Trust Bank is trading at a PE ratio of 5.24 times earnings).
The largely bearish sentiments on the Exchange, leave room for a further price decline. Year to date, the stock is down 16.2%, underperforming the NSE All-Share Index which is down 6.3%.
Beta Glass: HOLD
Recent Results
Results for the 2018 financial year show that revenue rose from N22.1 billion in 2017 to N26.3 billion in 2018. Profit before tax rose from N5.8 billion in 2017 to N7.1 billion in 2018. Profit after tax also rose from N4.1 billion in 2017 to N5 billion in 2018.
Price information
Current Share Price: N58.35
Price to Earnings Ratio: 5.39X
Year to Date Return: -14.57%
One Year Return: -17.91%
External View: None
Our View
Beta Glass is a HOLD in Nairametrics’ opinion. While the stock is trading at a price-earnings ratio slightly cheaper than the average PE ratio on the NSE (of 7.5 times earnings), the stock has shown bearish tendencies in recent times.
The stock lost 18.9% last week and was one of the worst performing stocks. Negative sentiments on the NSE mean that the stock could decline further in the weeks to come.
Oando: HOLD
Recent Results
Results for the 2018 financial year show that revenue increased from N497 billion in 2017 to N679 billion in 2018. Profit before tax from continuing operations fell from N20.7 billion in 2017 to N11.1 billion in 2018. Profit after tax, however, increased from N19.7 billion in 2017 to N28.7 billion in 2018.
Price Information
Current Share Price: N4.85
Price to Earnings Ratio: 2.47X
Year to Date Return: -3%
One Year Return: -19.17%
External View
None
Our View
Oando Plc is a HOLD in Nairametrics’ opinion. A hold opinion means that intending investors would be better off waiting for a further dip in price before taking positions.
On a fundamental basis, Oando still has some ways to go. The company has cut down its debt, and its sale of a residual stake in Axxela Limited (formerly Oando Gas and Power) will further lower it.
Investors with a significantly long term view would, however, be better off when it is in a position to pay dividends before taking positions.
Disclaimer
Please consult a financial adviser before making an investment decision.
