UAC of Nigeria Plc ("UACN") has maintained steady growth both in revenue and profit lines since FY'23 despite the short-term macroeconomic impact of the current policy environment. The company's performances were supported by tactical price adjustments, cost optimization and improved operational efficiency that filtered through most of its key business segments—packaged food and beverages, edibles and feeds, and paints. Given the company's strong outperformance in 9M'24, with associated EPS ahead of our previous full-year forecast by 11.2%, we have updated our projections for FY'24 and subsequent years to arrive at a new 12-month Target Price (TP) of N38.21. This TP suggests an implied 62.3% upside from the current reference price of N23.55 and a BUY recommendation.
