Afrinvest Advises Investors to Reduce Airtel, MTNN Stocks
Afrinvest Securities Limited foresaw negative upside potential in Airtel Africa, and MTN Nigeria Plc, according to its stock recommendation list release on Monday.
The investment securities firm advised investors to reduce interest in the two telecom giants listed on the Nigerian Exchange, NGX as its stockbrokers expect negative
Data from the Nigerian Exchange, NGX, showed that MTN Nigeria closed at N264.2 per share on Friday, while Airtel Africa remained unchanged at N2156.90 in the local bourse.
In the update release, Afrinvest reduced target price for MTN Nigeria from N338.20 to N254.87, which is below its current market price ahead of the telecom company’s earnings release.
Airtel Africa target price was however adjusted upward to N1,988.87 from N1,861.32 with 7.8% downside, as per Afrinvest Securities Limited estimate.
In its stock recommendation, the investment firm stated that expected total return of the telecom stock ranges from nil to negative.
“Aggressive exit or entry may not be appropriate, as the stock might fluctuate into a 10.0% decline over a 12- month horizon. Thus, the slim upside potential does not adequately compensate for the inherent risk”.
While Airtel Africa has remained flat, MTN Nigeria has gained more than 32% from the beginning of the year to date in the equities market.#Afrinvest Advises Investors to Reduce Airtel, MTNN Stocks#
