Given the sustained commodity and exchange rate pressures, we adjust our forecasts for Dangote Sugar Plc. On a year-on-year basis, global raw sugar prices are 21.7% higher (+4.4% YtD), while the Naira has weakened across the different FX markets (I&E: -2.8% YoY; Parallel: -17.1% YoY). Adjustments for these pressures resulted in an 8.8% contraction in our 12-month target price to N17.75 and a HOLD recommendation on the stock.
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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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