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Analyst Opinion on NEM Insurance Plc
#1
The stock is currently trading at N2.00 with a very weak bargain sentiment from investors- an indication of a strong possibility of active selldown in the near future as there is no positive news to drive the price above its 52Weeks high of N2.42kobo.

its Q2'2020 earnings report may have triggered the recent selldown from N2.25 to the current price of N2.00 as investors reacted to the unimpressive KPIs. We are of the view that the selldown may extend further as sentiments remain bearish towards the stock in the short-to-medium term.

In addition, the Dividend Yield of 7% may not really look attractive for any long term player at the moment. The recent rally witnessed on the Nigerian bourse had been majorly driven by yield. On that note, an entry below the current price of N2.00 would make a lot of sense. I would recommend a BUY at N1.50 or N1.60kobo.

Notwithstanding, the stock has some healthy fundamentals, considering its impressive PAT margin close to 16%. Though, the sustained decline in the bottom-line in the last 3 quarters remains a concern.

NEM Insurance Plc provides life and non-life insurance services. It provides services such as fire insurance, general accident insurance, marine, and aviation insurance, motor vehicle insurance, oil, and gas insurance, liability insurance, miscellaneous and home protection insurance

The stock is among the Nigerian quoted companies that have consistently paid a dividend as a reward to investors.
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