Dangote Cement Price Slump Presents 69% Upside Potential – Analysts
Dangote Cement Plc is estimated to have strong instinct value that could see the company stock rising by 69% above its market price. In successive selloffs, the cement stock has lost weight and come down from the number one position on the Nigerian Exchange.
In the equities market, Dangote Cement Plc slumped to N394 per share as investors’ sentiment waned as a result of pressures facing the company’s earnings.
The company, which is now valued at N6.7 trillion, crossed N11.700 trillion last year following huge share acquisitions by billionaire investors Femi Otedola. The market anticipates the cement company earnings release to stem the negative tide in the stock market with the hope of better performance in full year 2024.
In a review, Meristem Securities Limited set Dangote cement target price at N667.16 per share at N394 as reference price, resulting to 69.33% upside potential.
Dangote recorded an unimpressive 0.56% year-on-year increase in profit after tax to N279 billion in 9 months in the financial year 2024, reflecting the sharp rise in costs and other external economic pressures that contributed to the subdued growth in net profit.
Dangote Cement’s financial performance for 9M 2024 reveals strong growth potential, driven by substantial revenue growth and strategic cost management.
While Dangote Cement has faced significant cost challenges that exert pressure on its margins, the company has demonstrated resilience and adaptability in navigating the macroeconomic headwinds, PAC Capital Limited said in a note.
With its ongoing strategic focus on sustainability, efficiency, and market growth, the company is well-positioned to address these challenges effectively.
Dangote Cement stands as a foremost cement producer in Africa with a production capacity of 52 million metric tons annually across various locations on the continent. This substantial capacity makes Dangote Cement a vital player in driving infrastructure development in Nigeria and across other African markets, analysts said. #Dangote Cement Price Slump Presents 69% Upside Potential – Analysts CBN Opens FX Window for BDC to Stock up at NFEM Rate
