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Stock Picks: January 10, 2022

Company Current Price Year High Year Low Current P/E Dividend Dividend Yield (%) Entry Price Target Price Upside (%) Guidance
UBA 8.00 9.25 6.75 2.02 0.80 10.00 7.95 9.20 13.56 Buy
DANGSUGAR 17.00 21.80 15.00 11.04 1.50 8.85 16.90 21.00 19.58 Buy
WAPCO 25.80 31.50 19.50 9.66 1.02 3.88 25.65 29.10 11.86 Buy
NGXGROUP 21.20 25.90 15.30 14.93 - - 21.07 23.53 10.36 Buy
MTNN 197.00 209.90 157.00 19.54 9.40 4.77 195.85 215.00 8.91 Hold
SEPLAT 665.00 770.00 451.00 15.96 39.80 5.98 661.10 747.15 11.52 Buy
UBA Plc (UBA) provides banking and financial products to corporates and individuals. The company recorded a 37% and 36% growth in PBT and PAT respectively in its 9-months financials.

The growth is largely led by its subsidiaries in other African markets. Our valuation puts fair value of the bank at N9.20 per share.
Dangote Sugar Refinery Plc (DANGSUGAR) manufactures and sells refined sugar to consumers and industrial markets in Nigeria.
Our modelling indicates that a combination of market-wide portfolio rebalancing and dividend payout would drive fair value to N21.00 per share in 2022.
Lafarge Africa PLC (WAPCO) is a building materials company. The company's recent 9-month 2021 financials revealed a 22% growth in revenues, a 43% growth in profits and an interim dividend of N1.00 compared to 9-months 2020.
Our valuation shows that the fair value of Lafarge Africa PLC is N29.10.
Nigeria Exchange Group (NGXGROUP) is a multi-asset exchange for the best of Nigerian enterprises listed on its Premium, Main, and Growth Boards. Its products include diverse fixed income securities; Exchange Traded Products (ETPs); Mutual and other investment funds.
Based on our valuation models, we estimate that the newly listed entity has a fair value of N23.50 per share.
MTN Nigeria (MTNN) offers mobile telecommunications services. The company's recent 9-months 2021 financials revealed a 24% growth in revenues and a 50% growth in profits compared to 9-months 2020.
On the back of the completion of the first round of its parent entity's offer for sale we value MTN Nigeria PLC at N215.00 per share.
Seplat Petroleum (SEPLAT) is engaged in oil and gas exploration and production. The company's 9-month 2021 financials exhibited a simultaneous 34% and 141% rise in revenues and PAT. Global
outlook for crude oil prices is positive in 2022 with the commodity expected to trade between $76.00 and $125.00 through the year.
Therefore, our modelling indicates N747.15 per share as fair value.

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