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

Fidelity Bank: HOLD 

Recent Results:

Results for the third quarter ended September 30 2018 show Gross Earnings increased from N130 billion in 2017 to N139 billion in 2018. Profit before tax rose from N16.2 billion in 2017 to N20 billion in 2018. Profit after tax also increased from N14.4 billion in 2017 to N17.8 billion in 2018.

Price Information

Current Share Price: N1.94
Price to Earnings Ratio: 2.53X
Price to Book ratio: 0.2
Year to Date: -21.14%
One year return: –31.75%

External View

Analysts at United Capital have a ‘Buy’ recommendation on the stock. They have a twelve month target price of N2.80. This represents a potential upside of 31% from the stock’s price of N2.10 when the report was prepared.

Our View

Fidelity Bank is a HOLD in Nairametrics’ opinion. Though the stock is trading at a PE ratio far lower than the average on the NSE, it is trading at 27.8% above its year low of N1.51. This leaves room for decline in what could be an equally bearish November on the NSE.

Total Nigeria Plc: HOLD

Recent Results:

Results for the third quarter ended September 30, 2018 show that revenue increased from N221 billion in 2017 to N226 billion in 2018. Profit before tax rose from N9.6 billion in 2017 to N11.4 billion in 2018. Profit after tax also rose from N5.9 billion in 2016 to N7.6 billion in 2018.

Price Information

Current Share Price: N198
Price Earnings Ratio: 6.91X
Price to Book Ratio: 2.22
Year to Date Return: -13.89%
One year Return: -9.93%

External View

Analysts at United Capital have a ‘Hold’ recommendation on the stock. They have a one year target price of N211.2 which represents a 6.7% upside from the stock’s price of N19, as at when the report was prepared.

Our View

Total is a HOLD in Nairametrics’ view. While the stock is currently trading at a PE ratio below the average on the NSE, it is trading at 11.48% above its year low of N177.60.

The stock is also trading largely in line with its peers Conoil which is trading at 8.6 times earnings and 11 (formerly Mobil Oil Nigeria) which is trading at 6.1 times earnings.

Investors would be better off taking positions in the stock after it has been marked down for an interim dividend payment.

The company would be paying an interim dividend of N3 per share on the 10th of December, 2018.

Julius Berger: HOLD

Recent Results:

Results for the 9 months ended September 30, 2018 show that revenue increased from N105 billion in 2017 to N118 billion in 2018. Profit before tax jumped from N85 million in 2017 to N5 billion in 2018. Profit after tax stood at N3.4 billion, as against a loss after tax of N349 million recorded in 2017.

Price Information

Current Share Price: N23.70
Price Earnings Ratio: 6.57X
Price to Book Ratio: 1
Year to Date Return: -15.36%
One Year Return: -16.15%

External View: None

Our View

Julius Berger Plc is a HOLD in Nairametrics’ opinion. Investors keen on taking positions would be better off waiting for a 35% further decline before doing so.

Investors already in the stock, would be better off holding as the company has recovered from last year’s poor performance, and is on track for a decent 2018 full year result.

The company’s fortunes are closely tied to crude oil prices, which are on an upswing. Higher prices mean higher revenue for Federal and State Governments, which are the firm’s key clients.

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