Atlass Places Conoil, Eterna, Seplat Stocks on Sell Recommendation
Equities analysts at Atlass Portfolios Limited have exhibited their bearish mood on oil stocks with buckets of sell ratings. In its stock recommendation for the week, Atlass Portfolios recommends that investors should offload their interest in Conoil, Eternal, Seplat, and Total.
The top oil and gas names are noted to have negative upside potential if investors chose to continue to hold, suggesting that these top names are already overpriced as per Atlass Portfolios estimate.
Conoil, which closed at N368 per share on the Nigerian Exchange on Friday, has a target price of N285 from equities analysts at Atlass Portfolios Limited.
At a 52-week high on the exchange, Conoil had reached N387.20 and a negative year-to-date return of 4.96%. Eterna has created wealth for investors with a 40.53% year-to-date return, but the stock retreated last week in the local bourse.
The stock attracts a sell rating on the notion that it has been relatively overbought at N34.15 market price. Atlass estimated N30 as the target price for Eterna, below its current market.
To equities analysts at the firm, N5200 is the fair value estimate of Seplat Energy, though the oil stock traded at N5700 – a position it held for months. Seplat has about 9% negative upside potential based on analysts estimates. Seplat has zero return on investment for its shareholders, though minimal outstanding shares speak volume about the energy stocks.
TotalEnergies Plc is also negative in terms of year-to-date return. The stock is recommended for sell by equities analysts who set its target price at N450, though the stock has raced far ahead, settling at N670 on Friday in the local bourse.
Over the last 52 weeks, Total had climbed to N698 before it retreated. # Analysts Guide Investors to Sell Conoil, Eterna, Seplat Nigerian Exchange Falls by N73bn as Investors Dump VFD, OANDO
