Honeywell Flour Mill Plc, a Nigerian processor of flour and livestock feeds, advanced the most in 2 1/2 months after investment bank Greenwich Trust Ltd. said the shares could almost double by the year end.
The company closed 4.8 percent higher at 2.84 naira in Lagos, Nigeria’s commercial capital, the biggest increase since Nov. 6. It was Honeywell’s eighth consecutive daily gain, the longest winning streak since Oct. 21, 2009. Over 13.8 million shares changed hands, or more than six times the three-month daily average, according to data compiled by Bloomberg.
“Honeywell Flour is attractive for short-term investment,” analysts at Lagos-based Greenwich wrote in a note to clients. The analysts maintained a ‘buy’ recommendation on the stock, with a year-end target price range of 4.59-4.78 naira, compared with its closing price on Jan. 18 of 2.52 naira.
Net income for the three months through September climbed to 1.3 billion naira ($8.3 million) from 959 million naira a year earlier, Honeywell said on Nov. 14. The jump in net income “is reason for investors to hope for higher dividends for the 2013 financial year,” the Greenwich analysts wrote, citing Honeywell’s investor relations department.
Honeywell has gained 36 percent this year, ahead of a 7.7 percent rise for Flour Mills of Nigeria Plc and 2.4 percent for Dangote Flour Mills Plc. The Lagos-based company has a capacity of 1,610 metric tons per day and is installing a new plant with additional capacity of 1,000 tons a day, according to Greenwich.