Stocks on our Buy/Sell/Hold list are drawn from the top losers and gainers of the prior week, as well as various analysts’ reports.
Eterna Oil: HOLD
Recent Results:
Latest Results for the nine months ended September 30, 2018, show that revenue increased from N135 billion in 2017 to N205 billion in 2018. Profit before tax, however, fell sharply from N2.9 billion in 2017 to N1.7 billion in 2018. Profit after tax also fell from N2 billion in 2017 to N1.1 billion in 2018.
Price Information
Current Share Price: N5.45
Price to Earnings Ratio: 3.54×
Price to Book Ratio: 0.57
Year to Date Return: 34%
One Year Return: 42.89
External View: None
Our View
Eterna Oil is a HOLD in Nairametrics’ opinion. The stock is trading at a PE ratio largely in line with other companies in the sector such as Total and 11 Plc which are trading at 5 times earnings each. Year to date, the stock is up 34%. Investors already in would be better off holding.
PZ Cussons: SELL
Recent Results:
Results for the first quarter ended August 2018 show that revenue fell from N18.5 billion in 2017 to N15.8 billion in 2018. The company’s losses worsened year on year from N181 million in 2017 to N204 million in 2018.
Price Information
Current Share Price: N10
Price to Earnings Ratio: 11.89X
Price to Book Ratio: 0.9
Year to Date Return: 51.46%
One Year Return: 56.04%
External View
Analysts at United Capital have a BUY recommendation on the stock. They have a 12-month target price of N20.6 which represents an 86.4% upside from the stock’s price of N11.1 as at when the report was prepared.
Analysts at FBN Quest have an ‘Underperform’ rating on the stock. They have a target price of N19.1 which represents a potential upside of 91% from the stock’s price of N10 as at when the report was prepared.
Analysts at Afrinvest have a BUY recommendation on the stock. They have a target price of N15.04 which represents a potential upside of 122.7% from the stock’s price of N22.27 as at when the report was prepared.
Our View
PZ Cussons is a SELL in Nairametrics’ opinion. The company’s results have remained negative in the last two quarters, and have shown no sign of changing.
FBN Holdings: HOLD
Recent Results:
Results for the third quarter ended September 30, 2018, show that interest income dropped from N356 billion in 2017 to N337 billion in 2018.
Profit before tax dropped from N55.4 billion in 2017 to N51.3 billion in 2018. This represents a 7.4% drop year on year. Profit after tax dropped from N45.8 billion in 2017 to N44.9 billion in 2018. This represents a 1.9% decrease year on year.
Price Information
Current Share Price: N7.55
Price to Earnings Ratio: 5.40x
Price to Book Ratio: 0.3
Year to Date Return: 14.20%
One Year Return: 7.20%
External View
Analysts at United Capital have a BUY recommendation on the stock. They have a 12-month target price of N10.7 which represents a 33.8% upside from the stock’s price of N8 as at when the report was prepared.
Analysts at Afrinvest have a BUY recommendation on the stock. They have a 12-month target price of N9.89 which represents a 30.1% upside from the stock’s price of N7.60 as at when the report was prepared.
Our View
FBN Holdings is a HOLD in Nairametrics’ opinion, as the stock is trading largely in line with other tier 1 peers such as Zenith Bank which is trading at a PE ratio of 4.1 times earnings and Guaranty Trust Bank which is trading at 5.5 times earnings.
Year to date, the stock is down 14.20%. Investors would be better off waiting for a further price drop before taking positions.
