Report
Victor Dima
EUR 44.50 For Business Accounts Only

Nestle Nigeria (HOLD, TP NGN 740/share) - Sales growth in the fast lane; Upgrade to HOLD


  • We upgrade NESTLE NL to HOLD following four consecutive Q’s of accelerating sales performance and an improved outlook for the Nigerian consumer
  • Q1 17A sales increased by a solid 69% y/y and 17% q/q, following price increases and likely market share gains. EBIT margin has remained stable with opex management offsetting gross margin pressures.
  • We increase our TP by 30% to NGN 740/share from NGN 570/share (5% total upside) after c.30% upgrade to our FY 17e/18e EPS estimates. 


Underlying
Nestle Foods Nigeria PLC

Provider
Arqaam Capital
Arqaam Capital

Established in 2007, Arqaam Capital is a specialist emerging markets investment bank, bringing regional and international product offerings to the emerging markets. Arqaam Capital combines international best practice with expertise in the markets in which we operate. Our primary role is to provide financial intermediation and create investment opportunities for frontier and emerging markets investors looking to invest in their own markets and abroad, as well as international investors seeking opportunities in target frontier and emerging markets. Arqaam Capital is headquartered in the Dubai International Financial Centre (DIFC), with additional offices in Libya, Lebanon, Egypt, and South Africa. 

Arqaam Capital's research platform provides the largest coverage footprint of MENA equities and one of the largest on the African continent with a total of 300 stocks under coverage. Arqaam Capital is ranked as one of the leading research providers in the region - a reflection of its broad coverage universe, its in-depth and high quality research, as well the compelling investment ideas that the team generates. The analysts closely analyze their sectors and issue in-depth company and sector research while the strategy team connects the micro with the macro, focusing on index analysis, macroeconomics and strategy research. 

Analysts
Victor Dima

Other Reports on these Companies
Other Reports from Arqaam Capital

ResearchPool Subscriptions

Get the most out of your insights

Get in touch