Nairobi Securities Exchange stock:
Shares of Centum Investment Company Ltd (NSE:ICDC) edged up a modest 1.18% during Tuesday’s trading to close the day at Sh42.75. The Tuesday session saw Centum rise to a high of Sh43 and fall to a low of Sh42.50 before gaining some ground. The shares have rallied in the range of Sh38.75 to Sh66.50 over the last 52-weeks. During Tuesday’s trading, 822,600 Centum shares changed hands compared to the stock’s daily average volume of 174,042 shares.
To BUY or to SELL?
At least one equity research firm believes that Centum Investment Company Ltd (NSE:ICDC) is worth adding to your portfolio. For their May 2016 equity research report, analysts at AIB Capital have a BUY rating on Centum shares. Their target price for the stock is Sh54.55, suggesting a modest upside potential over the stock’s prevailing share price.
At least one equity research firm believes that Centum Investment Company Ltd (NSE:ICDC) is worth adding to your portfolio. For their May 2016 equity research report, analysts at AIB Capital have a BUY rating on Centum shares. Their target price for the stock is Sh54.55, suggesting a modest upside potential over the stock’s prevailing share price.
Centum management disagree with the price target
Despite AIB Capital’s favorable rating on Centum Investment Company Ltd (NSE:ICDC) shares, the management of the investment company disagrees with the AIB’s Sh54.55 target price. Centum’s CEO, James Mworia, recently claimed that AIB’s price target greatly undervalue the company. Mworia seemed to suggest that as an insider he should know better and with his insider acknowledge of Centum’s potential, he has personally purchased the shares at a price of Sh65. With that Mworia said he believed that Centum shares are worth more than Sh65 and that time will prove him right. He even went further to reveal that a number of Centum insiders have also purchased the company’s shares at prices above Sh60.
Despite AIB Capital’s favorable rating on Centum Investment Company Ltd (NSE:ICDC) shares, the management of the investment company disagrees with the AIB’s Sh54.55 target price. Centum’s CEO, James Mworia, recently claimed that AIB’s price target greatly undervalue the company. Mworia seemed to suggest that as an insider he should know better and with his insider acknowledge of Centum’s potential, he has personally purchased the shares at a price of Sh65. With that Mworia said he believed that Centum shares are worth more than Sh65 and that time will prove him right. He even went further to reveal that a number of Centum insiders have also purchased the company’s shares at prices above Sh60.
Why did AIB give Centum lower valuation?
According to AIB Capital analysts, Centum Investment Company Ltd (NSE:ICDC) could run into cash shortage problems occasioned by delays in some of its major projects that have consumed massive cash investments. However, Mworia countered the claim by saying that Centum’s liquidity is strong and he doesn’t foresee a cash shortage situation playing out in the company any time in the near-term.
According to AIB Capital analysts, Centum Investment Company Ltd (NSE:ICDC) could run into cash shortage problems occasioned by delays in some of its major projects that have consumed massive cash investments. However, Mworia countered the claim by saying that Centum’s liquidity is strong and he doesn’t foresee a cash shortage situation playing out in the company any time in the near-term.
Longhorn investment
Centum Investment Company Ltd (NSE:ICDC) recently took a controlling stake of 60% in publishing company Longhorn Kenya Ltd (NSE:LKL). The publishers raised Sh533 million through a rights issue that offered Centum the opportunity to almost double its stake in the company. Longhorn received Sh390 million investment from Centum.
READ: Centum (NSE:ICDC) nearly doubles stake in Longhorn (NSE:LKL) to 60%.
Nairobi Securities Exchange stock:
Centum Investment Company Ltd (NSE:ICDC) recently took a controlling stake of 60% in publishing company Longhorn Kenya Ltd (NSE:LKL). The publishers raised Sh533 million through a rights issue that offered Centum the opportunity to almost double its stake in the company. Longhorn received Sh390 million investment from Centum.
READ: Centum (NSE:ICDC) nearly doubles stake in Longhorn (NSE:LKL) to 60%.
Nairobi Securities Exchange stock:
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