Industry analysts have said Julius Berger Nigeria has the potential to record more than 70 per cent capital surge over the next 12 months.
This projection is coming as the leading construction company works on numerous major public and private sector contracts.
Analysts at GTI Securities said Julius Berger Nigeria’s share price, which opened on Tuesday, May 19, at N51.70 per share, has a fair value of N87.70 within a 12-month investment horizon, indicating potential capital gain of 69.6 per cent.
According to the analysts, b Julius Berger Nigeria is set to immensely benefit from Nigerian government’s bid to diversify the economy with focus on infrastructure development in agriculture, power and transportation among others.
“We have placed a positive rating on the stock of Julius Berger Nigeria because the stock is undervalued based on our analysis. Our estimates were majorly driven by the company’s fairly seesaw revenue growth trend along with its strong presence in the Nigerian construction sector as it possesses a robust project portfolio due to the high caliber projects it undertakes many of which are government funded projects,” GTI Securities stated.
Noting that Julius Berger Nigeria has positioned itself to benefit from the need for economic diversification in Nigeria, the analysts projected turnover of N203.05 billion and net profit of N8.31 billion Julius Berger Nigeria in the year.