Stocks on our Buy/Sell/Hold are picked from gainers and losers of the previous week, as well as various analyst reports.
This week’s edition is a somewhat special one, as trading for the week closed on Thursday, due to the Easter holidays. As such, the gainers and losers are picked from this week’s trading session.
Access Bank: HOLD
Recent Results
Results for the first quarter ended March 2019 show that gross earnings increased from N137 billion in 2018 to N160 billion in 2019. Profit before tax jumped from N27.2 billion in 2018 to N45.1 billion in 2019. Profit after tax also rose from N21.9 billion in 2018 to N41.1 billion in 2019.
Price Information
Current Share Price: N6.85
Price to Earnings Ratio: 1.74X
Price to Book Ratio: 0.42
Year to Date Return: 0.74%
One Year Return: -34.86%
External View
Analysts at United Capital have a ‘Hold’ recommendation on the stock. They have a one–year target price of N7.10, which represents a potential upside of 19.3% from the stock’s price of N6.90 as at when the report was prepared.
Analysts at Afrinvest have a ‘Buy’ recommendation on the stock. They have a target price of N10.44 which represents a potential upside of 75.5% from the stock’s price of N5.95, as at when the report was prepared.
Our View
Though it is trading at a low multiple within the tier one space (and the larger market as a whole), Access Bank is a HOLD in Nairametrics’ opinion.
While the bank’s Q1 2019 results have shown a massive improvement quarter on quarter, investors would be better off waiting for the bank’s H1 2019 results which would contain detailed information on the combined entity.
Nestle Nigeria: HOLD
Recent Results: Results for the 2018 financial year show that revenue increased from N244 billion in 2017 to N266 billion in 2018. Profit before tax rose from N46.8 billion in 2017 to N59.7 billion in 2018. Profit after tax also increased from N33.7 billion in 2017 to N43 billion in 2018.
Price Information
Current Share Price: N1,580
Price to Earnings Ratio: 29.12X
Price to Book Ratio: 24.9
Year to Date: 6.4%
One Year Return: 14.55%
External View
Analysts at Afrinvest have an ‘Accumulate’ rating on the stock. They have a target price of N1,799.62 which represents a potential upside of 23.6%, from the stock’s price of N1,456 as at when the report was prepared.
Analysts at United Capital have a ‘Buy’ recommendation for the stock. They have a 12–month target price of N1,636.1 which represents a potential upside of 12.4%, from the stock’s price of N1,580 as at when the report was prepared.
Our View
Nestle Nigeria is a HOLD in Nairametrics’ opinion. Investors would be better off waiting for the company’s first quarter 2019 results to be released before deciding to either Buy or Sell.
Management of the firm had, in a notice to the Nigerian Stock Exchange, indicated that its board would meet on the 30th of April, 2019 to consider them.<span data-ccp-props="{"201341983":0,"335559739":160,"335559740":259}">
Julius Berger: HOLD
Results for the 2018 financial year show that revenue increased from N141 billion in 2017 to N194 billion in 2018. Profit before tax jumped from N3.7 billion in 2017 to N10.1 billion in 2018. Profit after tax also rose from N2.5 billion in 2017 to N6.1 billion in 2018.
Price information
Current Share Price: N25
Price to Earnings Ratio: 3.94X
Price to Book Ratio: 1
Year to Date: -3.92%
One Year Return: 14.55%
External View
None
Our View
Julius Berger is a HOLD in Nairametrics’ opinion. Investors would be better off waiting for the release of the company’s Q1 2019 results before making a Buy/Sell decision.
The company had sent a notice to the NSE, stating that its board audit committee would meet on Thursday, April 25, 2019, to consider the results for the first quarter ended March 31, 2019.
Disclaimer
Please consult a financial adviser before making an investment decision.
