Analysts Downgrade Seplat, Conoil, TotalEnergies to Sell
Analysts at Atlass Portfolios Limited have slammed sell recommendations on oil and gas names as a result of weak upside potentials with exclusion of Eterna Plc.
The firm’s oil and gas coverage universe includes Seplat Energy, Conoil, Total and Eterna Plc. In its latest recommendation lists, analysts advised investors to exits their positions in Seplat Energy, suggesting that the stock is overvalued based on its estimated target price.
In the week recommendation to investors, Atlass Portfolios Limited noted that the Seplat Energy has negative upside potential of 11.35% at 12 months target price of N3,365. This means holding up to the stock could mean loss.
Seplat is already trading at N3,749.90 per share on the Nigerian Exchange, suggesting that the oil stock whose fortune depends largely on crude oil price in the global commodity market has been overpriced.
From the beginning of the year to date, Seplat Energy Plc has delivered an impressive 64.28% return on investment to shareholders while the stock remained flattish over the week.
Also Conoil Plc shares were also downgraded to sell rating on expectation of 52.56% downside at N55 price target set by the investment firm over the 12 months.
Based on its market data, Conoil has also delivered healthy year to date return of 50.77% to investors in the market. Last week, Conoil Plc hit 52 week high at N126.50 following strong buying interest in the oil stock after earnings release.
Atlass Portfolios Limited also advise investors to exit positions in TotalEnergies Plc due to more than 20% downside, as estimate reflects the oil stock is overpriced.
Analysts set target price of Total at N310 per share over the 12 months versus current market price of N388.90. The oil stock year to date has not been impressive at 1.01% when compare with its peers.
Eterna price target is estimated at N28 per share, versus current market price of N15.20 on the Nigerian Exchange.
The oil stock is trading significantly below its 52-week high and analysts estimated that Eterna has 84.21% upside potential at the current market price. Last week, the stock lost 5% of its market value, thus, create opportunity for investors to reposition at cheaper rate. Moody’s to Upgrade Ghana Ratings after Eurobonds Debt Restructuring
