Futureview Estimates 54% Upside in WAPCO
Equities research analysts at Futureview financial service Limited have estimated a 54% upside potential in cement producer Lafarge Plc (Ticker: WAPCO) amidst a sustained rally in the Nigerian Exchange.
A buy rating accorded to the stock suggests that the investment firm has rich sentiment toward the cement company’s market performance and plans to bet large on its prospect. In the first quarter, the company’s earnings declined but its cash position improved from the negative free cash flow reported in the comparable period.
At the reference date, Futureview analysts at the investment firm set a price target for the counter at N44.70 per share ahead of the second quarter earnings season. The local bourse, more than 3.107 million shares of Lafarge WAPCO were traded with total trades consummated at N90.26 million.
With a moderate gain, the cement company’s share price closed at N29.05 on Monday, from N28.85. At the end of the trading session, Lafarge Plc was now worth about N469 billion to the Nigerian Exchange.
Projecting into the new week, Futureview said that considering many stocks are trading at an attractive discount, the financial service company expects positive sentiment in the market this week.
However, analysts note the attractive yields in the fixed-income space could distract investors. Profit-taking could also take a toll on market direction. MarketForces Africa reported that following the resignation of Khaled El Dokani, Lafarge Africa appointed Lolu Alade-Akinyemi as its Chief Executive Officer.
In the first quarter of the year, the cement company reported that its profit slumped by 14.90% year on year to N14.935 billion from N17.558 billion in the comparable period in 2022.
This happened following a marginal increase of 1.3% in net sales, which settled at N91.821 billion versus N90.6 billion 12 months earlier. Though profit nosedived, the cement company reported that its free cash flow surged 191% to N4.659 billion.
In a statement, Khaled El Dokani, ex-CEO of Lafarge Africa, said it was a challenging first quarter due to the general elections’ economic impact and the cash shortage in circulation following the currency redesign policy.
“These constrained our financial performance. However, we remain focused on delivering sustainable value to all stakeholders as the market recovers post-election and through the rest of the year”, he added. #Futureview Estimates 54% Upside in WAPCO