Dangote’s $2.5bn Ethiopia Bet Aligns with Analyst Confidence in Nigerian Stocks

Nigeria’s equities market is off to an upbeat start this week as analysts at Cowry Asset Management issued a fresh wave of “Buy” recommendations on five major stocks, highlighting growing investor confidence amid improving earnings outlooks and attractive valuations.

According to the firm’s latest market advisory, Access Holdings Plc (AccessCorp), Aradel Holdings Plc, Nigerian Aviation Handling Company (NAHCO), Nigerian Breweries Plc, and MTN Nigeria Communications Plc have all been tipped for short-term upside potential based on their fundamentals and price performance on the Nigerian Exchange (NGX).

The analysts described the equities as “high-conviction buys,” citing strong earnings forecasts, resilient balance sheets, and healthy valuation multiples.

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AccessCorp stood out with the most compelling growth projection, offering investors a potential return of up to 60%. The bank’s stock, currently trading at ₦26.50, carries a price target of ₦42.40. Cowry’s report projects an earnings per share (EPS) increase from ₦4.88 to ₦7.81, while the price-to-earnings (P/E) ratio of 5.43x signals that the stock remains undervalued. Analysts set a stop-loss at ₦22.50 and a take-profit at ₦30.50.

Aradel Holdings followed closely, backed by robust fundamentals in the energy sector. The oil and gas company’s share price, currently at ₦650.10, is projected to reach ₦845.10—an upside of 30%. Aradel’s EPS is forecast to climb from ₦33.26 to ₦43.24, while its strong book value per share (₦334.50) underlines its asset strength. Analysts placed the short-term stop-loss at ₦552.59 and take-profit at ₦747.62.

The aviation sector also featured prominently, with NAHCO’s steady post-pandemic recovery attracting investor interest. Priced at ₦106 per share, NAHCO’s target price is ₦139.90, translating to a 32% potential gain. The company’s EPS is forecast to grow from ₦4.56 to ₦6.01, supported by a book value per share of ₦8.92. The analysts identified ₦90.10 as stop-loss and ₦121.90 as take-profit levels.

Consumer goods giant, Nigerian Breweries Plc, made the list with a projected 40% upside. The stock currently trades at ₦76 with a target of ₦106.40. Despite economic headwinds, the firm’s consistent performance is expected to lift EPS from ₦2.84 to ₦3.98. With a P/E ratio of 26.74x, the analysts’ stop-loss is set at ₦64.60 and take-profit at ₦87.40.

Telecommunications heavyweight, MTN Nigeria, rounded out the recommendations, with analysts noting that the company remains undervalued despite a challenging regulatory environment. Trading at ₦425, the telecom giant’s price target of ₦569.50 suggests a 34% potential gain. While its book value per share is currently negative (-₦2.02), MTN’s projected EPS growth from ₦19.76 to ₦26.48 supports the firm’s continued profitability. Cowry set a stop-loss at ₦361.30 and take-profit at ₦488.80.

Overall, Cowry Asset’s October 3 outlook projects a cautiously optimistic tone for the market as the Q3 earnings season approaches. The firm expects these top picks to benefit from improved investor sentiment, moderate inflationary relief, and potential monetary policy stability in Q4 2025.