7 Kenyan firms listed among 100 companies in frontier markets to watch out for in 2018

Seven Kenyan firms have been listed among 100 companies to watch out for in 2018, by top financial institution.

The guide by Citi Research, a division of Citigroup Global Markets Inc, lists KCB Bank, Equity Group, British American Tobacco (BAT) Kenya, Bamburi Cement, Centum, East African Breweries Limited (EABL), and Safaricom among the 100 firms’ in frontier markets investors should watch keenly.

“About half of them (45) are covered by Citi Research analysts; for these we provide financial forecasts, valuations, and target prices. For the rest (55), we provide historical financials as well as information about the company and its strategy,” Citi analysts said.

The 100 companies sourced from 28 countries and 11 MSCI (Morgan Stanley Capital International) sectors represents $280 billion in total market cap.

Citi Research investment ratings fall under three categories; buy, neutral and sell.

The firm has recommended a buy for KCB, and a neutral for EABL, Equity Group and Safaricom.

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It however did not rate Bamburi Cement, BAT Kenya and Centum since they are not covered by its analysts.

The analysts have a positive outlook on frontier markets this year and their views are based on a supportive global environment of synchronised growth, firm commodity prices and normalising monetary conditions.

High government debt levels, a downturn in global growth and rising equity valuations could however clip the wings of the said companies, the analysts warned.