GTI 5 Weekly Stock Picks for the Week 08/02/ 2016 -15/02/2016

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Click ‘here‘ to ‘download‘ the GTI 5 Weekly Stock picks for the week 08/02/ 2016 -15/02/2016.

Commentary

UBA claims the top spot on the table this week. The bank has shown some consistency since the beginning of this year. We were particularly concerned about the bank’s capital adequacy in the past, but are impressed by the progressive growth in the bank’s shareholders fund since the beginning of the year

Dangote Cement climbs to the second spot on the GTI 5 for this week, after strong gains recorded last week. The company controls about 80% of the cement market in Nigeria and has made major in routes into other African countries. The recent announcement of a slash in cement price as well as the tightening margins due to the tax element on some of its production lines which previously enjoyed the 5-year moratorium for expansion projects (including the economic parameters which has generally affected the market) has increased the stocks volatility in the recent past. However, our long term estimates for the firm are still realizable for its share market dominance.

Zenith Bank retains the third spot this week. The top tier lender has shed some value following the bearish sentiments that has prevailed over the Nigerian capital market. Julius Berger drops to the fourth spot on the top 5 this week. The focus on infrastructure in Nigeria to help jump start the economy in 2016 is a major incentive for stocking up on the shares of

Julius Berger. We expect increased business activities in the construction sector in 2016 and we expect that this will translate to a boost in the company’s income.

GT Bank claims the fifth spot this week. The bearish trend in the market has opened up a good entry window for the stock.

NSE Ticker *Current Price(N) Investment Horizon Fair Value/Exit Price(N) Expected Returns (%)

1. UBA                      2.82                       12 Months                             6.09                                     115.96%

2. DANGCEM        124.30                   12 Months                              230.2                                   85.20%

3. ZENITH              12.83                     12 Months                              22.5                                      75.37%

4. JBERGER           41.50                    12 Months                               72.18                                    73.93%

5 GUARANTY        15.99                    12 Months                               27.21                                     70.17%

*Current Price as at 08/02/2015

Click ‘here‘ to ‘download‘ the GTI 5 Weekly Stock picks for the week 08/02/ 2016 -15/02/2016.

GTI

GTI is a leading Nigerian Investment Banking group with proven expertise in Financial advisory, Securities Dealing (Fixed Income and Equities), Asset management and Deal Origination. We have strong capacity in financial service delivery.

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