Stock Watch: Safaricom Limited

Safaricom Limited is the largest a communication company in the region and one that always outshines the rest in terms of quality products, amazing services as well as making tremendous profits which many have been described as ‘crazy profits’.

As of August 29, 2015, the consensus forecast amongst 14 polled investment analysts covering Safaricom Limited advises that the company will outperform the market and this has been the consensus forecast since the sentiments of investment analysts improved on June 06, 2014.

The ten analysts offering 12-month price targets for Safaricom Limited have a median target of 18.25, with a high estimate of 21.45 and a low estimate of 15.95 and this median estimate represents a 21.67 percent from the last price of 15.00.

Year on year, both dividends per share and earnings per share excluding the extraordinary items, growth rose by 51.61 percent and 31.01 percent respectively. When measured on a five year annualized basis, both the dividends per share as well as the earnings per share growth ranked the highest in relative to other peers in the communication sector.

Consequently, year on year Safaricom Limited grew revenues 16.40 percent from 124.29 billion to 144.67 billion while the net income improved by 31.23 percent from 17.54 percent to 23.02 percent.

At per the January this year, 2015, Safaricom Limited rallied mightily on the stock market with +6.137 percent to close at 14.70, trading 1.348 shares at a session high of 15.00, +8.303 percent.

Safaricom Limited remains in a relentless bull trend which has strongly lasted 36 months and the company is headed to  all times new highs in short order and it is +4.62 percent in 2015.