SOURCE (abridged): https://nairametrics.com/buy-sell-hold-week-to-date-october-19-2018/

Buy/Sell/Hold is picked from top gainers and losers of the previous week, and various analysts’ reports.

(1). Fidelity Bank Plc: HOLD
Results for half year ended June 2018 show gross earnings increased from N85.8bn in 2017 to N88.9bn in 2018. Profit Before tax increased from N10.2bn in 2017 to N13.1bn in 2018. Profit after tax also increased from N9bn in 2017 to N11.8bn in 2018.

Price Info:
Current Share Price: N1.93
Price to Earnings Ratio: 1.42X
Price to Book Ratio: 0.30
Year to Date Return: -21.54%
One Year Return: 45.21%

External View: Analysts at United Capital have a BUY recommendation on the stock, with target price N2.80, representing potential upside 54.7% from the price of N1.80 as at when the report was prepared.

Analysts at FBNQuest have a ‘Neutral’ rating on the stock with target price N3.00, representing potential upside 75% from price of N1.90 as at when the report was prepared.

Our View: Fidelity Bank is a HOLD in Nairametrics’ opinion. While the stock is trading quite cheaply, further decline is possible in view of current market sentiment. Investors would be better off with further 50% price decline before taking position.


(2). Stanbic IBTC: HOLD
Results for HY ended June 2018 show gross earnings increased from N97.1bn in 2017 to N114bn in 2018. PBT jumped from N29.1bn in 2017 to N50bn in 2018. PAT also increased from N24.1bn in 2017 to N43bn in 2018.

Price Info:
Current Share Price: N45
P/E Ratio: 6.97X
P/B Ratio: 2.18
YTD Return: 8.43%
One Year Return: 15.86%

External View: None

Our View: Stanbic IBTC is a HOLD in our opinion, as it is up 8.43% YTD. Investors would be better off waiting for a dip in price before taking position.


(3). Cadbury Nigeria Plc: SELL
Results for HY ended June 2018 show revenue increased from N16.2bn in 2017 to N17.5bn in 2018. Loss before tax fell from N766 million in 2017 to N423 million in 2018.

Price info:
Current Share Price: N10.30
P/E Ratio: 30.59X
P/B Ratio: 1.70
YTD Return: – 34.27%
One year return: 0.31%

External View: None

Our View: Cadbury is a SELL in Nairametrics’ opinion. Not only is the stock trading at over two times average PE ratio on the NSE, but H1 2018 results are also poor and may be an indication of poor full-year results. Poor fundamentals in the last few years have led to most analysts removing it from their coverage.


(4). Newrest ASL Nigeria Ltd: HOLD
Results for HY ended June 2018 show revenue dropped from N2.7bn in 2017 to N2.5bn in 2018. However, PBT jumped from N197 million in 2017 to N631 million in 2018.

Price Info:
Current Share Price: N6.00
P/E Ratio: 3.35X
YTD Return: 0.84%
One Year Return: -16.80%

External View: None

Our View: Newrest ASL is a HOLD in Nairametrics’ opinion. It is trading at a year high of N6.00. Investors would be better off waiting for a decline before taking position.