Investing in stocks requires careful analysis, as entering the market without sufficient knowledge can lead to significant risks. Those lacking expertise often turn to stockbrokers, who can help mitigate potential losses and guide investment decisions effectively.
In August, the Nigerian Exchange (NGX) saw considerable volatility as bargain hunting diminished compared to earlier trends. This shift indicates that price corrections have lowered valuations of listed companies, creating opportunities for potential gains.
For September, equity analysts at CSL Stockbrokers Limited have curated a selection of high-potential stocks for their clients, focusing on those with strong upside prospects.
ACCESSCORP: Target Price: ₦43.88
Access Holdings Plc, Nigeria’s leading financial services conglomerate by asset size, offers an attractive investment case, underpinned by solid financial results, strategic capital-raising efforts, and a diversified operational framework.
As of FY 2024, the company maintained a robust capital adequacy ratio of 20.46%. Its asset quality remains strong, with an annualised cost of risk (COR) of 0.8% in Q1 2025, though a slight uptick is anticipated due to the phasing out of regulatory forbearance.
The stock’s valuation is compelling, with a price-to-book value (PBV) ratio of 0.39x. Additionally, Access Holdings reported a strong annualised return on average equity (RoAE) of 29.6% in Q1 2025.
The company is fully compliant with the Central Bank of Nigeria’s single obligor limit directive. On the issue of credit facility forbearance, Access Holdings has affirmed its commitment to meeting the Central Bank’s requirements by June 30, 2025, while continuing to maintain robust capital reserves and delivering dividends to shareholders.
“We have accounted for increased provisioning but still find valuations attractive,” the firm said.
GTCO: Target Price: ₦115.43
GTCO’s shift to a holding company structure has broadened its income sources, spanning banking, payments, pensions, and asset management, enhancing its resilience and growth outlook.
As of FY 2024, GTCO’s capital adequacy ratio stood at an impressive 39.3%. The bank demonstrates strong asset quality, with a Q1 2025 annualised cost of risk at 1.7% and a non-performing loan (NPL) ratio of 5.2% in FY 2024, reflecting sound risk management.
Its balance sheet is largely free of forbearance loans, showcasing prudent financial stewardship. GTCO boasts one of the lowest cost-to-income ratios in the sector, at 28.1% in Q1 2025 (excluding provisions), underscoring its focus on operational efficiency.
The company excels in asset quality, governance, capital strength, cost control, and consistent dividend payouts. Its recent listing on the London Stock Exchange (LSE) has further enhanced its investment appeal.
NAHCO
The Nigerian Aviation Handling Company (NAHCO) is poised for continued growth in FY 2025, driven by a rebound in air travel, rising cargo volumes, and improved operational performance.
NAHCO is set to achieve robust full-year results, fueled by expanded service offerings and strategic collaborations at major airports. In H1 2025, the company recorded a remarkable 111.41% year-on-year revenue increase to ₦32.33 billion, with pre-tax profit growing by 96.07% to ₦11.79 billion, reflecting strong revenue growth and effective cost controls.
DANGCEM: Target Price: ₦681.71
Dangote Cement delivered an exceptional H1 2025, with pre-tax profit soaring 149.2% year-on-year to ₦730.03 billion, driven by strong revenue growth in Nigeria and Pan-African markets, operational efficiencies, and reduced foreign exchange losses.
Looking forward, increased public infrastructure spending and private-sector investments are expected to sustain this growth trajectory. The stock trades at an EV/EBITDA multiple of 6.76x, compared to the Europe, Middle East, and Africa (EMEA) peer average of 9.10x, suggesting room for valuation appreciation.
WAPCO: Target Price: ₦199.14
Wapco is well-positioned for sustained growth in H2 2025, driven by rising cement demand and effective cost management strategies. The company is on track for a strong full-year performance, with profit growth expected to remain robust.
In H1 2025, Wapco’s pre-tax profit surged by 328.3% year-on-year to ₦199.74 billion, underscoring its strong earnings momentum. Its consistent dividend payments continue to enhance investor confidence.
The stock trades at an EV/EBITDA of 6.30x, significantly below the EMEA industry average of 10.30x, indicating potential for valuation upside.
CADBURY: Target Price: ₦83.08
Cadbury Nigeria Plc, a leading producer of branded fast-moving consumer goods, operates in three key segments: Refreshment Beverages, Confectionery, and Intermediate Cocoa Products. The company is enhancing its operational efficiency through prudent cost management and balance sheet optimisation.
Its valuation remains attractive, with an EV/EBITDA of 7.87x, below the Middle East and Africa (MEA) median of 8.41x. In H1 2025, Cadbury posted a 50.2% year-on-year revenue increase to ₦77.25 billion, with pre-tax profit rising 204.7% to ₦14.54 billion, reflecting strong revenue growth and operational efficiency.
NESTLE: Target Price: ₦2,327.22
Nestle Nigeria Plc has sustained its strong performance from Q4 2024 into 2025, driven by robust revenue growth and effective cost management. In H1 2025, the company recorded a 42.8% year-on-year revenue increase to ₦581.12 billion and a pre-tax profit of ₦88.40 billion, up 135% year-on-year, positioning it to potentially resume dividend payments by FY 2025.
The stock’s valuation is compelling, with an EV/EBITDA of 7.44x, below the MEA median of 10.43x.
UACN: Target Price: ₦103.44
UAC of Nigeria Plc is a diversified conglomerate with operations in Animal Feeds, Paints, Packaged Food and Beverages, Quick Service Restaurants, Logistics, and Real Estate. Its subsidiaries lead in baked snacks, premium decorative paints, and fish feed categories.
UACN recently acquired CHI Limited, owner of Chivita and Hollandia brands, from The Coca-Cola Company. This strategic acquisition strengthens UACN’s position in the fast-moving consumer goods (FMCG) sector, with CHI’s Superbite and Beefie brands complementing UACN’s Gala brand.
In H1 2025, UACN’s revenue grew 33% year-on-year to ₦110.41 billion, though pre-tax profit fell 26% to ₦11.10 billion due to the absence of prior-year foreign exchange and property gains. However, the underlying pre-tax profit of ₦10.7 billion was 91% higher than H1 2024’s ₦5.6 billion. The stock trades at an EV/EBITDA of 7.32x, below the MEA median of 9.80x.
AIRTELAFR: Target Price: ₦3,230.33
Airtel Africa is expected to report strong revenue and profit growth, driven by recent tariff increases across key markets, which should enhance top-line performance. Cost-cutting measures and efforts to localise debt are reducing exposure to foreign exchange volatility, boosting investor interest.
In its Q1 2026 earnings, Airtel Africa’s revenue rose 22.4% year-on-year to US$1.42 billion, with pre-tax profit surging 268.9% to US$273 million, reflecting robust earnings momentum.
MTNN: Target Price: ₦555.33
MTN Nigeria’s recent tariff hikes are expected to drive revenue growth and bolster profit margins. Cost management initiatives and renegotiated tower contracts have reduced foreign exchange losses, supporting a recovery in profitability and shareholder equity.
“We believe that the combination of a stronger financial position and the anticipated resumption of dividend payments will enhance investor sentiment and drive renewed interest in the stock in the coming months.”
In H1 2025, MTN recorded a 54.5% year-on-year revenue increase to ₦2.38 trillion, with pre-tax profit reaching ₦622.26 billion, a significant improvement from a pre-tax loss of ₦751.29 billion in H1 2024, reflecting strong top-line growth and cost discipline.
