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Dear Investor,

Good Day and Happy new week.

Below are the top 5 Weekly Stock Pick For the Period 06/05/2017 – 06/12/2017 & Watch List.

Also, check out the watch list for the new week.

Julius Berger:

The company has a huge public sector portfolio which includes: Permanent Site of the National Institute for Legislative Studies, Abuja, New Residences for Presiding Officers of the National Assembly, Abuja, Rehabilitation & Extension of Airport Expressway, Abuja, Rehabilitation of Badia Roads,Lagos, Lagos–Badagry Expressway,Lagos, Lagos–Ibadan Dual Carriageway, Section 1, Lagos– Shagamu, and many more. (these are all on-going). We expect that with the focus of the government on infrastructure development a lot of the alloted N1.8trillion (30% of the total budget for 2016) will go to ongoing projects across the country. This will boost JB’s revenue base and profitability for the 2016 fiscal year. In addition to the on-going projects, the company has also won new projects: Asokoro Conference Centre, Abuja, Dangote Jetty Apapa, Lagos, Uyo–Etinan Road, Akwa Ibom, Upgrade of NLNG MOF Jetty, Bonny Island,Dualisation Oil Mill Elelenwo Akpajo Road, Port Harcourt, No Potholes Programme, Port Harcourt. These in addtion to the company’s other business arms will ensure sustainability in revenue base going forward.

Julius Berger
Target PriceN70.00
Investment Horizon12.Months
Price (N)N39.86
Shares Outstanding (Mn)1,320
Expected Return75.61%
52Week High/LowN50.93/N34.83

Total Nigeria

Total Nigeria is one of the foremost oil and gas companies in the Nigerian oil sector. The company is one of the largest in terms of retail outlets across  the country and leverages on these outlets to push sales  volume. The company has also benefitted from the  deregulation of the downstream sector where it operates as  a result of its retail presence in the volume driven oil  marketing space. The company pays consistent dividend  and is a firm pick with PFA’s and FPI’s .The Company has  declared a final dividend of N7.00 bringing total dividend  for 2016 to N17.00.

Total Nigeria
Target PriceN320.00
Investment Horizon12 Months
IndustryOil & Gas
Price (N)N265.00
Shares Outstanding (Mn)339.52m
Expected return20.75%
52Week High/LowN345.00/N162.55

Dangote Cement:  

Dangote Cement is Africa’s leading cement producer with three plants in   Nigeria and plans to expand into 13 other African countries. The  Group is a fully integrated quarry-to-customer producer with  production capacity of 29 million tonnes in Nigeria and new  operations set to begin across the rest of Sub-Saharan Africa.  The Group plans to have 42 million tonnes capacity by the end  of 2016 and 50-60 million tonnes of production, grinding and  import capacity in Sub-Saharan Africa by 2016. Dangote  Cement’s Obajana plant in Kogi State, Nigeria, is the largest in  Africa with 13 million tonnes capacity across four lines. The  Ibese plant in Ogun State has four cement lines with a  combined installed capacity of 12 million tonnes. The Gboko  plant in Benue State has 4 million tonnes capacity. Over time,  Dangote Cement has eliminated Nigeria’s dependence on  imported  cement  and  is  transforming  the   nation  into an exporter of the product serving neighboring countries.

Dangote Cement Plc
Target PriceN230.20
Investment Horizon12.Months
IndustryIndustrial Goods
Price (N)N192.93
Shares Outstanding (Mn)17,040
Expected Return19.32%
52Week High/LowN203.96/N149.26
Read:  Union Bank Donates Care Bags to Thousands of Underprivileged Persons across Nigeria

Zenith Bank:

Despite the challenges in the Nigerian financial services sector, with rising loan loss provisions as a result of their exposure to the oil and gas  sector as well as the potentially toxic power sector, doubts  about asset quality and weakening CAR, we still see  opportunities in the tier one banks. Zenith bank has one  of the strongest CAR’s in the sector and continues to  leverage on its stringent risk assessment framework to  mitigate capital erosion. The Bank’s balance sheet size is  a major incentive for us at this time because we believe  that its size/liquidity is a competitive edge in an economy  awash with opportunities like the Nigerian economy.  The bank also has strong brand acceptability and a wide  branch spread.

Zenith Bank Plc
Target PriceN22.02
Investment Horizon12.Months
IndustryFinancial Services
Price (N)N19.99
Shares Outstanding (Mn)31,396
Expected Return10.15%
52Week High/LowN20.94/N13.10


Despite the challenges in the Nigerian financial services sector, with rising loan loss provisions as a result of their exposure to the oil and gas sector, as  well as the potentially toxic power sector, doubts  about asset quality and weakening CAR, we still  see opportunities in the tier one banks.

UBA reported impressive Q1 -2017 numbers and  even though loan loss provisions were high, in  absolute terms, the figure is not alarming and was  adequately compensated by the N27.6billion rise  in gross earnings, amounting to a 37% YoY  expansion. Our expectation for FY 2017 is  conservative and makes provision for a further  rise in loan loss provision and yet, our price target  is reasonable.

Target Price8
Investment Horizon12.Months
IndustryFinancial Services
Price (N)N8.40
Shares Outstanding (Mn)36,280
Expected Return6.67%
52Week High/Low8.40/3.89%

Watch List

FO, Nestle, NB, GT, Fidson






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