Sep 1 (Lagos) - Stanbic IBTC has cut its target price estimates for Flour Mills of Nigeria Plc to N 131 from N 167.50 earlier. Flour Mills stock fell by 5% to N 76 at the NSE today. Stanbic maintains a "buy" rating on the stock. Even after this cut in forecast, Flour Mills still offers a huge potential gain of 72% should the stock hit 131 from today's stock price. Therefore Flour Mills still remains a top stock.

The main reason for this cut in estimates that raw materials cost of expected to remain high well into 2012 and the company's cement business could shrink after the federal government imposed import restrictions on Cement.

Flour Mills of Nigeria Plc processes grains and sells cement. It also has a subsidiary listed on the NSE in Bag Manufacturing Company of Nigeria Plc.

Earlier this week, Vetiva Capital Management also cut estimates for Nigerian stocks as fixed income offers better value to investors at the moment.