Guinness Nigeria: Analysts See Upside Potential, Differ on TP
Reflecting their different expectations, equities analysts at two leading investment firms have estimated significant upside potential for investors holding Guinness Nigeria Plc at N167 reference market price.
Guinness Nigeria Plc lost about 2% of its market value last week due to soft selling pressures at the same time when the Nigerian bourse went down by more than N2 trillion.
The brewer share price settled at N167, a moderate decline from its opening price of N170. Guinness Nigeria has peaked at N183.90 in the market, its highest value in 52 weeks.
The Brewer Company returned to profitability, as latest unaudited results showed profit after tax settled at N10.079 billion. Its 15 months earnings per share came in at NGN12.00, up from net loss per share of N25 in the comparable period.
Analysts said the company’s performance in the period was driven by strong topline growth, improved margins, and lower finance costs, reflecting the benefits of a more stable operating environment.
The combination of pricing gains, easing input cost pressures, and stable FX conditions drove margin expansion and a sharp uptick in profitability, Cordros Securities Limited said in a review. “Our target price (TP) is NGN171.34 per share”, the investment firm said in a post-earnings review.
In its equities review, analysts at Cowry Asset Limited set a price target for Guinness Nigeria Plc at N246, reflecting 47.31% upside potential at the share price of N167 on Friday.
Compared with its 52 weeks high in the local bourse, Guinness Nigeria is trading closer to Cordros Securities’ target price of N171.34 than the future price set by Cowry Asset Limited.
Finding a balance, it is more likely to see Guinness Nigeria climbing as new catalyst to drive fresh rally form in Q4 … For now, trading activities will reflect just pure market sentiments.
The market anticipates year-end sales to support the company’s earnings performance. Fidelity Bank Posts N212 Billion as Profit in Q3
