Dangote, BUA, Lafarge Cement Rated Hold over Weak Upside
Analysts at Apel Asset Limited have kept Dangote, BUA and Lafarge WAPCO Plc on hold due to weak upside potential, a review of the investment firm stock recommendation revealed.
“Over the next twelve months, we expect the stock to range between <-15% and <+15% from the current market price”, the investment firm explained its hold ratings on the cement names.
With less than 5% upside potential over the 12 months, analysts advised investors to be neutral trading BUA cement shares in the market. Apel Asset estimated that the cement company has only 4.6% upside potential on fair value estimate set at N149.79 per share at reference price of N143.20.
The cement name has delivered 47.63% year to date return on investment placed by stock traders. The investment firm also place Dangote Cement on hold recommendation as it advice investors to exercise caution.
According to its estimate, Dangote Cement Plc has 4.03% upside potential, and thus, it does worth investors betting. Dangote Cement Plc fair value is estimated at N683.15 versus reference price of N656.70 in the stock market.
Apel Asset forecasted that the cement giant earnings per share will reach N26.45 in 2024 versus N24.56 in 2023.
Dangote Cement Plc has seen 156.61% year to date return due to less volatility in the market after the group share buyback programmes.
With 3.79% upside potential on N34.05 reference market price based on Apel Asset Limited estimate, Lafarge WAPCO is also placed on hold rating. The cement company has 8% year to date return on investors’ bets.
Lafarge WAPCO fair value is estimated at N35.34 per share. Apel Asset Limited projected that the cement company’s earnings per share will print at N1.29 in 2024.
“Investors should therefore consider taking position at the support prices of fundamentally sound equities, as we commence Q3’2024, while maintaining a cautious approach to the market.
“With the recent wave of banks raising equity capital by way of right issue and/or public offering, the trend is that the market price of the stock might dip initially for a period of time and might adjust upwards as the results of the companies are released”, the firm said. FBN Holdings Plc Climbs as Sell Pressures Ease
