We raise our 12-month Target Price (TP) for GUINNESS to N74.60 (versus N45.17 previously), following material adjustments to our model. These revisions reflected better-than-expected H1'21/22 results and positive disclosures from the recent conference call that may have raised hopes for better shareholder rewards in the near-to-medium term. GUINNESS’ EV/EBITDA has been hovering in undervalued territory since May 2019. In 2020, the multiple even went below one standard deviation away from its five-year mean EV/EBITDA following the impact of COVID on the business. This undervaluation and the recent turnaround in operating performances support our TP upgrade and “HOLD” recommendation on the stock. ...
