Equity analysts advise investors to offload Unity Bank, Unilever, Guinness stocks

Equity pickers have advised investors to adjust portfolio with recommendation to Buy UBA, Sell UBN Hold FCMB, and Reduce Sterling but Accumulate Stanbic IBTC shares.

Afrinvest in its weekly stock recommendation asked investors to sell Unity and Union Bank stock as it observes that the stock are overpriced at the moment.

Also, the investment banking firm placed sell recommendation on Unilever and Guinness, both companies operating at the fast moving consumers’ goods segment.

Analysts at Afrinvest think that these stock trade at premium to intrinsic value and it thus expected them to lose up to 10% or more of its market value.

Immediate exits is advised at the prevailing market price, Afrinvest said.

However, Afrinvest expects total returns over the next 12 to be 25% or more on Zenith Bank, ETI, Fidelity and Guaranty Trust Bank shares.

Analysts rated Access Bank stock hold, as OANDO is under review.

The stock with expected total returns over the next 12-month to be 25% otherwise label “BUY” also include MTNN, MOBIL, FORTE Oil and TOTAL.

It also include NESTLE and DANGSUGAR.

Read also: Sell-Offs in Banking stocks, others drag Nigeria’s bourse lower

Meanwhile, Afrinvest expects nothing from Sterling Bank Plc stock, as analysts view that the stock return might even slip to negative.

The firm asks investors to remain neutral on FCMB, Wema, NB and PZ as expected total returns not expected to exceed 10% base on the prevailing market price at reporting date.

Due to slim upside potential, Afrinvest advised that Sterling Bank stock should be REDUCED in a portfolio as aggressive exit or entry may not be appropriate.

“The stock might fluctuate into a 10% decline over a 12-month horizon. Thus, the slim upside potential does not adequately compensate for the inherent risk”, analysts rating reads.

Equity analysts advise investors to offload Unity Bank, Unilever, Guinness stocks


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