The Nigeria equity market closed the week positive, expanding by 0.23% WoW driven by interest in NESTLE (+7.35%) and other bellwether stocks – ZENITHBNK (+3.61%), GUINNESS (+1.37%) and SEPLAT (+6.96%). On a sectorial basis, most sectors closed negative except the Food sector which increased 4.99% WoW reflecting the gains in NESTLE.

All opinions and recommendations on below stocks are from analysts at ARM Securities limited. Easykobo does not endorse or oppose any recommendations expressed in this article.

Fidelity Bank Plc – ( FIDELITYBK ) BUY (FVE: N2.92). Analysts are now more optimistic over their expectation for earnings growth over 2018 largely on the back of lower loan-loss provisioning. Analysts have revised their FY 18E EPS higher to N0.82 (previously N0.76) which is 25% higher YoY. Analyst's FVE of N2.92 (previously N2.82) translates to a BUY rating on the stock. Based on current price, analyst's dividend expectation translates to a dividend yield of 8%.

Zenith Bank Plc – ( ZENITHBANK ) STRONG BUY (FVE: N35.25). Zenith Bank now looks very attractive following sell-off across the equity market. Zenith trades at a P/B of 0.95x, a premium to peer average of 0.85x. Strong valuation for zenith is premised on substantial decline in funding cost and improved asset quality.

Unilever Nigeria Plc – ( UNILEVER ) STRONG BUY (FVE: N50.98). Unilever is analyst's top pick in the consumer space with FY 18E EPS expectation of N2.13 (+19.7% YoY), based on revenue growth (+13.1% YoY) and significant moderation in interest expense (- 91% YoY) – following the sizeable deleveraging of its balance sheet. On analyst's numbers, Unilever trades at a FY 18E and FY 19F P/E of 20.2x and 18.7x relative to 5-year historical average of 33.5x.

Okomu Oil Palm Plc – ( OKOMUOIL ) OVERWEIGHT (FVE: N92.45). Although analysts expect PAT to be lower over FY 18 due to lower revenue and higher cost, analysts have an OVERWEIGHT rating on Okomu based on their FVE of N92.45, as analysts believe current pricing presents an attractive entry point.

Total Nigeria Plc – ( TOTAL ) STRONG BUY (FVE: N244.28). Analysts upgrade their FVE on Total Nigeria Plc to N244.28, as analysts now model a 24% hike in domestic petrol price to N180 per litre and increase in finance income in 2019 - following robust subsidy receivables as at H1 18.

Corporate Benefit Tracker

Last week

Red Star Express Plc announced the opening of a new office in Burkina Faso which will handle shipments within Burkina Faso. In addition, the company has been appointed Licensee of FedEx and TNT in Burkina Faso.

The NSE announced the lifting in suspension of four firms – Premier Paints Plc, Ekocorp Plc, Austin Laz & Company Plc and FTN Cocoa Processors Plc – following due compliance of submitting relevant financial statements.

This week

Dividend Payment: UPDC REIT

Closure of Register: Seplat Plc, UPDC REIT, Cutix Plc.

Reporting for EasyKobo on Monday , 12 November 2018 in Lagos, Nigeria

Source: ARM Securities Limited

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