Capital Markets Update: Central banks hold rates in latest policy meetings

Analyst: Chidozie Daniels* The Federal Reserve Bank of the United States (FED) kept its cash policy rate unchanged at the range of 5.25% – 5.50%. Chairman Powell struck a softer tone in his statements to the press, hinting that the bank may consider a shift in policy stance, as they evaluate the impact of past...

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FIDELITY BANK PLC Q3’23 Earnings: Steady growth in interest income elevates performance

Analyst: Olumide Sole* Target price: ₦10.00 Rating: BUY   Fidelity Bank released its Q3’23 financial statements, reporting Gross Earnings growth of 82% to ₦156 billion figure (Vetiva: ₦131 billion). This impressive growth came as a result of an 82% y/y increase in Interest Income to ₦135 billion (Vetiva: ₦121 billion), driven by a 33% y/y...

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DANGOTE CEMENT PLC Q3’23 Earnings: Pan-African operations buoy group performance

Analyst: Abigail Alabi* Target price: ₦388.53 Rating: BUY Dangote Cement Plc recently released its 9M’23 earnings, reporting a topline growth of 29% to ₦1.5 trillion. For the Nigerian operations, cement volumes declined for the third consecutive quarter this year. Historically, the Q3 period is quite weak for cement players due to heavy rainfall during the...

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TOTALENERGIES MARKETING NIGERIA PLC Q3’23 Earnings: FX losses continue to pressure bottom line

Analyst: Victoria Ejugwu* Target price: ₦378.63 Rating: SELL Revenue performance largely comes in line with expectations.In its recently released 9M earnings results, TOTAL reported revenue growth of 20% y/y to ₦422.6 billion, coming in slightly above our estimate (Vetiva estimate: ₦403.3 billion). The company’s fuel business remained the primary driver for this growth, with fuel...

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MTN NIGERIA COMMUNICATIONS PLC Q3’23 Earnings: Data income fuels impressive revenue growth

Analyst: Victoria Ejugwu* Target price: ₦315.74 Rating: BUY MTNN’s 9M results largely mirrored our expectations. The company reported a 22% y/y increase in revenue to ₦1.8 trillion (Vetiva estimate: ₦1.8 trillion). The data segment remained the primary driver for topline growth, with data revenue rising 36% y/y to ₦750 billion. Voice services also expanded 11%...

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GUINNESS NIGERIA PLC Q1’24 Earnings: Price increase sustains revenue growth

Analyst: Oluebube Nwosu* Target price: ₦66.50 Rating: SELL Cost of sales outpaces revenue growth. In Q1’24, GUINNESS reported a revenue of ₦59.5 billion, representing a 13% increase y/y. This increase was based off price increases as volumes declined, just like for other consumer goods companies. While revenue showed growth, the gross profit margin experienced a marginal...

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