Following the release of 9M'24 result of Dangote Cement Plc (DANGCEM), we have marginally revised our 12-month Target Price “TP” downward to N493.77 (from N524.32 previously), representing a 3.1% potential upside from the current reference price. We maintain a HOLD recommendation on the stock.
DANGCEM is well-positioned for a strong finish in 2024 and steady growth in 2025, supported by increased volume contributions from its Nigerian operations, bolstered by the government's ongoing focus on infrastructure development and elevated pricing across both Nigerian and Pan-African markets. Despite persistent cost pressures in the short term, we anticipate resilient margins driven by strategic initiatives such as the transition to alternative energy sources, enhanced operational efficiencies, and a slower pace of currency devaluation. We also project stronger cash flows for FY'25.
