Eight stocks have emerged as brokers’ main picks for October, with Nigerian Breweries receiving the strongest assist among the many six funding companies reviewed by Nairametrics.
The brewer secured 5 Buy or Upside suggestions, whereas Access Holdings, ETI, GTCO, BUA Cement, MTN Nigeria, Dangote Sugar and Aradel obtained 4 constructive rankings every.
This represents a a lot shorter consensus list than in late September, when 14 stocks attracted at the very least 4 constructive suggestions.
UBA, FCMB, Zenith Bank, NASCON, and AIICO had been among the many stocks that did not retain their earlier positions.
All eight stocks nonetheless have costs beneath the degrees brokers consider they might attain. However, some now seem extra engaging than they did in late September as a result of their share costs have fallen.
- Aradel recorded the most important change. Its share value dropped from N1,550 to N1,377, creating extra room for positive aspects if it reaches the brokers’ common goal. The anticipated return consequently elevated from 67.1% to 85.7%.
- The similar occurred with MTN Nigeria. Its share value fell from N890 to N840, elevating the potential return from 39.8% to 44.6%. Nigerian Breweries and Dangote Sugar additionally supplied barely extra room for positive aspects than they did in September.
ETI, Access Holdings and GTCO nonetheless supplied positive aspects based mostly on the brokers’ targets, however barely lower than within the earlier assessment. BUA Cement’s anticipated return remained unchanged.
The assessment covers suggestions issued on October 12 and 13 by Cowry Asset Management, Morgan Capital Securities, Blue Marina Research, Arthur Steven Asset Management, First Securities Brokers and Futureview Financial Services.
Only stocks rated Buy or Upside had been counted as constructive suggestions.
Nigerian Breweries strikes forward
Nigerian Breweries obtained constructive suggestions from 5 companies; the very best quantity recorded by any inventory within the October assessment.
- The brokers’ targets ranged from N88.94 to N107.61. Their common goal of N97.51 suggests a potential acquire of 30.7% from the October 9 value of N74.60.
The suggestions mirror confidence within the brewer’s restoration, together with improved pricing and revenue margins.
- Nigerian Breweries moved from an collected lack of N72.17bn on the finish of 2025 to constructive retained earnings of N13.65 billion by June 2026.
- It additionally repaid its remaining N59.71bn in financial institution borrowings, leaving the corporate with no excellent loans and N74.63bn in money. Cash generated from operations rose sharply from N10.50bn to N126.98bn.
However, weak shopper spending, greater manufacturing prices and foreign-exchange pressures stay vital dangers.
Banks retain sturdy illustration
Access Holdings, ETI and GTCO every obtained 4 constructive suggestions.
- Access Holdings had a median goal of N42.91, indicating a possible acquire of 45.5% from N29.50.
- ETI recorded the very best anticipated return, with a median goal of N153.59 in contrast with its N67 market value. This implies an upside of 129.2%, though the determine was lifted significantly by Arthur Steven’s a lot greater goal of N299.29.
- GTCO’s common goal of N159.95 represents a possible upside of 21.6% from N131.50. Unlike the 4 companies recommending the inventory, Arthur Steven rated GTCO Sell and positioned its goal at N79.32.
UBA and FCMB, which had 4 constructive suggestions in September, obtained three every within the newest assessment. This doesn’t essentially imply each lacking dealer downgraded them, as some companies launched shorter suggestion lists in October.
BUA Cement, MTN and Aradel keep assist
BUA Cement retained 4 constructive suggestions and a median goal of N391.50. This represents a potential appreciation of 31.8% from N297. Arthur Steven, nonetheless, rated the inventory Hold.
- MTN Nigeria additionally obtained 4 constructive rankings. Its common goal of N1,214.83 implies a possible upside of 44.6% from N840.
- Aradel’s 4 constructive targets produced a median of N2,557.09, in contrast with its market value of N1,377. This signifies potential appreciation of 85.7%, the second highest on the list.
The targets for MTN and Aradel diverse extensively, exhibiting that brokers typically count on their costs to rise however disagree on how far they might go.
Dangote Sugar stays amongst main picks
Dangote Sugar obtained constructive suggestions from Blue Marina, Arthur Steven, First Securities, and Futureview.
- Their targets ranged from N87.88 to N102, producing a median of N95.21. This represents a potential appreciation of 36% from N70.
Compared with ETI, MTN and Aradel, the brokers had been extra carefully aligned with Dangote Sugar’s worth.
Zenith, NASCON and AIICO lose assist
Zenith Bank recorded one of many largest modifications from the late-September assessment, as its constructive suggestions fell from 4 to 2.
- Cowry and First Securities stay constructive. First Securities locations Zenith’s truthful worth at N149.37, representing a potential value acquire of 10.9% from N134.70. When its anticipated dividend is included, the dealer estimates a complete return of 25.4%.
- Futureview’s place modified primarily as a result of Zenith’s share value elevated. Its goal remained unchanged at N147.88, however the inventory rose from N128.40 in September to N134.70 in October. This diminished the potential acquire from 15.2% to 9.8%, prompting Futureview to vary its suggestion from Buy to Hold.
- Arthur Steven takes a extra detrimental place, score Zenith Sell with a goal of N102, which is about 24% beneath the October reference value. Blue Marina, in the meantime, moved the inventory from Buy to Under Review and withdrew its earlier N157.20 goal. This means its change can’t be attributed solely to the share value enhance.
- NASCON’s lack of assist was extra clearly pushed by its rising share value. The inventory elevated by 18.1%, from N160 in September to N188.90 in October, whereas First Securities retained its N212.11 truthful worth. As a consequence, the potential value acquire narrowed from 32.6% to 12.3%, main the dealer to maneuver NASCON from Upside to Neutral.
- Blue Marina and Futureview stay constructive on NASCON, with respective targets of N286.71 and N235.50. Their suggestions present that brokers nonetheless disagree over how a lot additional the inventory can rise.
- AIICO adopted an identical sample. Its value elevated from N3.77 to N4.14, whereas Blue Marina’s goal remained unchanged at N4.86. This diminished the anticipated value acquire from 28.9% to 17.4%, prompting the dealer to maneuver the inventory from Buy to Hold.
Futureview stays constructive on AIICO with a goal of N5.10, whereas Arthur Steven recommends Buy with the next goal of N6.62.
What buyers ought to take away
Nigerian Breweries presents the strongest case, combining broad dealer assist with bettering money circulation, decrease debt and a return to constructive retained earnings.
- Access Holdings, BUA Cement and Dangote Sugar have extra carefully aligned targets, whereas the huge goal ranges for ETI, MTN Nigeria and Aradel require larger warning.
Investors also needs to take note of entry costs. The modifications in Zenith Bank, NASCON, and AIICO present {that a} good inventory can lose its Buy score after its value rises and reduces the chance for additional positive aspects.
Broker suggestions ought to due to this fact be thought-about alongside earnings, money circulation, debt, and valuation.
