Following a challenging Q1’24 earnings performance, we have set a new 12-month target price (TP) of N74.02 (vs N93.13 previously) while maintaining a HOLD recommendation. Our revision stems from the negative impact of the persistent inflationary pressures on input costs and foreign exchange volatility on FX-denominated borrowings. Nevertheless, we expect improved sales volumes coupled with higher prices to drive a stronger top-line performance. In addition, we expect the positive impact of a lower effective tax rate from pioneer incentives to ease pressure on earnings.
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CardinalStone is a full service investment banking firm with a vision to build a world class investment banking firm of African origin; operating out of Lagos, Nigeria. The firm was incorporated in April 2008 and began operations in June 2008. CardinalStone is duly registered with the Securities & Exchange Commission in Nigeria to carry on business as an Issuing House, Fund Manager and Broker/Dealer
The Firm's activities are carried out across five business units: Asset Management, Investment Banking, Private Equity, Securities Trading and the Business Support Group.
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