03 Aug 2018 ( Lagos ): With the HI’18 scorecards rolling out, equity evaluation are being revised, and looks like ( SEPLAT ), ( ZENITHBANK ), ( ACCESS ), ( DANGSUGAR ) and ( FBNH ) are THE most recommended large caps stocks to be bought. Basically, you can buy these stocks at an economical price and get beautiful returns about a year from now. According to the data from the Bloomberg terminal, out of the top 30 most capitalized stock in NSE, these five will give the highest average potential return of a whopping 31.9% in a span of 12 months.
Breaking these stocks down a little further, ( SEPLAT ) heads this wolves pack, as the predicted 12-month average price for this oil and gas giant is about N 1001.14, which amounts to a skyrocketing potential return of 42.2% from its current stock price of N 704.
Seplat just posted its H1’18 extremely sound results, boasting of a 160% increase in its revenue and a PAT of N 14. 8 million as compared to a loss after tax of N8.4 billion in H1’17. The credit to this urge goes partly to the 94% rise in the working interest production and of course the oil rally which resulted in a 54% increase in the average realized crude oil price.
Of course the Banking giant has to be next, ( ZENITHBANK ) bagged the second spot, with a predicted average target price of N 39.19, amounting to a 38.8% positive annual return .Access Bank was the second-runners up, and is projected to surge by 36.1 % in 12 months owing to its predicted average target price of N13.34.
Getting the consolation spot was Dangote sugar. Since they reported a 25.6% YoY decline in their earnings of H1’18. The border sneak and Apapa gridlock are to be blamed, which caused a dip in their sales volume and hence they only boast a positive annual predicted return of 24.4% with respect to the avg target price of N 21.08.
The second tier bank FBNH came in last, with an 18% potential upside with an annual target price of N 11.8. While talking about its financials, this firm reported a 14% in PAT in H1’18 with respect to H1’17.
NSEASI has pared gains from early 2018, reeling from profit-taking and interest rate hikes in US. Despite NSE being wooed by the Bulls from the past week owing to the positive results of the bellwether stocks, making the NSE 30 rise by 0.27%, it still reports a YTD loss of 4% (as of Thursday), mainly due to the expected political uncertainty.
Reporting for EasyKobo on Friday ,03 August 2018 in Lagos, Nigeria
If you would like to post comments! Please log in.