Aviation player NAHCO yesterday joined the 100 club. Thats a select group of companies on the exchange trading above 100. In dollar terms, a N100 may not be a big deal. 

For the NGX, its major. You have barely 20 companies trading at a N100 a share or more. 

Narrow it to the N100 to N500 band, and you have circa half of that. 

Year to date the stock is up by over 100%  outperforming the All Share Index which is up by 16%. The index measures the average performance of stocks on the exchange. 

What’s driving the momentum? 

Its a mix of factors. 

The stock market has rallied in the last few weeks. A rising tide lifts all the boats  

From a valuation perspective, the stock was also undervalued. It closed last year at N48 with an  FY 24 earnings per share (profit per share) of N6.60.

Wrote this on the Q1 2025 results last month.

Where does NAHCO’s price go from here? 

 I suspect the stock may pull back in the next few days if there is a pull back in the stock market. 

Q2 2025 results for the company should be out sometime in July. Q2 numbers for the last two years were out late July. 

From a fundamental basis, if you take Q1 eps (spell out. profit per share)  of N2.22 annualize meaning multiply by 4, you have FY 25 eps of N8.88. 

If you apply a 10X or 12X multiple you would have somewhere between N88.8 and N106. 

NAHCO has lofty ambitions. If those are in place at the moment, then one should have value the firm at a higher multiple.

What of TA?

If you want to use technical analysis, and you can do a search on trading view, most of the TA indicators have it as a buy. 

If you use elementary technical analysis, an asset breaking an all time high like this would settle before moving higher.