Analyst: Chidozie Daniels* c.daniels@vetiva.com AM central banks maintain policy rates amid sticky inflation. In the recent week, monetary authorities worldwide disclosed their latest policy stance, evaluating the repercussions of prior rate adjustments on inflationary trends within their respective economies. For central banks in advanced markets (AM) such as the U.S. Federal Reserve (FED), Bank of Japan...
Analyst: Oluebube Nwosu* o.nwosu@vetiva.com Target price: ₦5.90 Rating: HOLD Pricing increases elevate topline In the fourth quarter of 2023, International Breweries demonstrated a substantial 38% y/y growth in revenue, reaching ₦80.5 billion. This impressive increase was due to higher prices across the firm’s product lines. While INTBREW has maintained its lowest price strategy, its products’...
Nigerian equities kicked off 2024 on a strong note, as the NGXASI gained 35.3% in January. Likewise, the positive performance filtered into our picks for 2024, with our conviction stocks returning 12.6% in the same period. Starting with the financial services space, our banking picks had a mixed showing. While FCMB returned an outstanding 20.9%...
Analyst: Abigail Alabi* a.alabi@vetiva.com Target price: ₦250.97 Rating: SELL PRESCO recently released its unaudited FY’23 earnings, reporting a 133% y/y growth in PAT to ₦30.4 billion. Volume fuels PRESCO’s revenue growth In Q3’24, revenue growth of 20% y/y to ₦26 billion, was delivered through a combination of increased volume and higher pricing amidst strong demand....
Analyst: Oluebube Nwosu*o.nwosu@vetiva.comTarget price: ₦35.91Rating: SELL Q3 revenue growth expands gross marginIn the third quarter of FMN’s fiscal year 2024 (Oct to Dec ‘23), the company exhibited an exceptional performance, with revenue skyrocketing to ₦594.6 billion, a substantial 51% increase compared to Q3’23. This remarkable growth came about by a mix of volume growth and...
Analyst: Ibukun Omoyeni*I.omoyeni@vetiva.com Lower oil prices moderate inflation in most SSA economies In 2023, headline inflation fell in 6 out of the top 10 economies in Africa. This can be linked to lower energy prices. The largest decline was recorded in Angola (-8.1 ppts), Ethiopia (-3.6 ppts) and South Africa (-0.9 ppts). The largest uptick...