Presco Plc’s near-term earnings are facing pressure from stagnant revenue growth, higher operating costs and an increase in its number of shares following its recently concluded rights issue, CardinalStone Research said.
The research house revised its 12-month target price for Presco to N2,140.25 and downgraded its recommendation to HOLD from BUY, implying 4.64 percent upside from its N2,045.30 reference price.
Presco’s H1 2026 revenue was virtually unchanged year-on-year at N198.8 billion, despite global crude palm oil prices maintaining an upward trend. Malaysian benchmark CPO averaged $1,089.35 per tonne in H1 2026, up 9.6 percent year-on-year, while global CPO prices were up 18.1 percent year-to-date.
CardinalStone attributed the weak revenue growth largely to the Ghanaian segment, where lower fresh fruit bunch yields resulted from delayed seasonal rains and the lingering effects of a previous dry spell.
Higher global CPO prices also did not pass through to Ghanaian domestic prices because pricing
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