Atlass Portfolio Releases Stock Recommendation ‘Red List’
Stock recommendation: With expectation of negative upside potential, Atlass Portfolios Limited has advised investors to exit positions in banking, oil and gas, Agriculture among others.
The investment firm appears to be bearish or negative about the stock market outlook, given its huge number of sell-down-filled stock recommendation list release on Monday.
In the banking segment, Atlass Portfolios Limited stock analyst excluded Access Bank, FCMB, and FBN Holdings from sell and hold recommendations.
“Implies the upside potential of the stock over the next period of 12-months is between 15% and 8% when the current price is compared to our fair value. Hence, investors are advised to remain neutral”, the investment firm said in its note.
The firm recommended that investors should sell their stocks in ETI, Fidelity, GTCO, and Stanbic IBTC. It keeps Sterling Bank and UBA on hold rating while the firm advised investors to sell their interest in Wema Bank and Zenith.
In the consumer goods segment, the investment firm stayed bearish on Guinness Nigeria, Unilever Nigeria, Nestle, and Vitafoam. Analysts was neutral on Nigerian Breweries stock, Dangote Sugar, and NASCON.
Atlass Portfolios Limited also advised investors to sell their interest in MTN Nigeria, UACN, and Lafarge WAPCO, but keeps Dangote Cement on buy lists. Major oil and gas names in the equities market, namely CONOIL, SEPLAT, ETERNA, and Total, were downgraded to sell.
“Sell implies the upward potential of the stock, when the current price is compared to our fair value is less than 8%. Hence, investors may choose to exit position on the stock”, Atlass said in its explanatory note.
The Nigerian equity market closed trading for last week on a positive note despite negative sentiment dominating four of the five trading sessions.
Atlass Portfolios Limited said the performance was primarily driven by buying interest in blue-chip stocks such as BUAFOODS, and 27 others, resulting in a growth of ₦196 billion in investors’ wealth.
The market’s gain was supported by an easing inflation rate and the CBN’s decision to hold interest rates steady. Consequently, the All-Share index increased by 443.88 basis points in the previous week, representing a growth of 0.41% to close at 108,497.40 absolute points.
Likewise, the market capitalization rose by 195.94 billion, to settle at ₦67.66 trillion, reflecting a 0.29% gain. #Atlass Portfolio Releases Stock Recommendation ‘Red List’# Afrinvest Advises Investors to Reduce Airtel, MTNN Stocks
