Top-5 Nigerian Equities League - Week 14 June, 2013

Proshare

Friday, June 14, 2013 11:40 / Morgan Capital**

On the top 5 league table for this week, we welcome two new entrants, NASCON and UBA as they edge out Dangote Cement and Fidson who have inched very close to our estimate fair values. Dangote Cement has returned over 13% in the last three weeks since making it to our top 5 on the league table while Fidson has returned over 43% to investors since making it to our top 5 league table. We wish to state that we will continue to ensure that companies with sound fundamentals and value make it to our top 5 on the league table weekly as we strive to ensure that investors maximize the potentials in the equities market.

Top 5 Nigerian Equities League [10/06/2013]



Commentary

On our league table for this week, Zenith Bank retains top position on the table as our most valuable equity for the week ended 10th of June 2013 with a potential upside of 41% from current prices to our estimated fair value of N32.04. We still expect the momentum in company’s Q1 -2013 to be sustained as the year progresses.

NASCON edges out mid-tier lender Fidelity Bank to clinch the second position on our league table this week with a potential upside of 38% from its current price to our estimate fair value of N16.80. Although the company suffered a steep 24% decline in revenue in the recently released Q1 -13 result, bottom-line improved marginally by 0.7%. We expect EPS to settle at N1.12 at FY 2013.

The Mid-tier lender Fidelity Bank comes in at the third position for this week with a potential upside of 33% from current prices to our estimate fair value of N4.38. The Bank’s Q1 -2013 result shows an impressive 40% improvement in gross earnings and a 39% improvement in net income YoY. We also expect this trend to continue going into H1 and FY 2013 as we anticipate that the banking sector will drive the market rally as FY 2013 earnings season progresses.

New Entrant on the top 5 equities league UBA brings up the rear on the league table for this week with a potential upside of 30% from current price to our estimate fair value of N 11.83

For other stocks that make up the top ten on our league table and other company specific research reports, investors can send their enquires to customercare@morgancapitalgroup.com. Our research is based purely on fundamentals and emerging verifiable information.

Kindly note that our league table is subject to change based on fluctuations of market prices and/or a review of our fair value estimates. These reviews are based on fundamentals and verifiable information coming from the companies.

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