Should you hold Conoil Plc ?

Conoil, a stalwart in Nigeria’s oil and gas sector, has recently captured the attention of investors with its impressive share price surge.

In 2023 alone, the stock soared by 217%, reaching a new 5-year high of N112.5 per share. This surge, combined with a 20.4% year-to-date gain in 2024, has prompted investors to question the stock’s potential for delivering favorable returns at its current valuation.

The bullish momentum behind Conoil’s stock can be attributed not only to the company’s consistent positive earnings but also to broader market dynamics, particularly the removal of subsidies by President Bola Ahmed Tinubu in 2023.