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 optimistic rankings every.
This represents a a lot shorter consensus list than in late September, when 14 stocks attracted at the least 4 optimistic suggestions.
UBA, FCMB, Zenith Bank, NASCON, and AIICO have been among the many stocks that did not retain their earlier positions.
All eight stocks nonetheless have costs under the degrees brokers imagine 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 largest change. Its share worth 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 worth fell from N890 to N840, elevating the potential return from 39.8% to 44.6%. Nigerian Breweries and Dangote Sugar additionally provided barely extra room for positive aspects than they did in September.
ETI, Access Holdings and GTCO nonetheless provided 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 have been counted as optimistic suggestions.
Nigerian Breweries strikes forward
Nigerian Breweries obtained optimistic suggestions from 5 companies; the 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 achieve of 30.7% from the October 9 worth of N74.60.
The suggestions replicate confidence within the brewer’s restoration, together with improved pricing and revenue margins.
- Nigerian Breweries moved from an gathered lack of N72.17bn on the finish of 2025 to optimistic 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 client spending, larger manufacturing prices and foreign-exchange pressures stay necessary dangers.
Banks retain sturdy illustration
Access Holdings, ETI and GTCO every obtained 4 optimistic suggestions.
- Access Holdings had a mean goal of N42.91, indicating a possible achieve of 45.5% from N29.50.
- ETI recorded the best anticipated return, with a mean goal of N153.59 in contrast with its N67 market worth. This implies an upside of 129.2%, though the determine was lifted significantly by Arthur Steven’s a lot larger 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 optimistic 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 preserve assist
BUA Cement retained 4 optimistic suggestions and a mean 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 optimistic rankings. Its common goal of N1,214.83 implies a possible upside of 44.6% from N840.
- Aradel’s 4 optimistic targets produced a mean of N2,557.09, in contrast with its market worth of N1,377. This signifies potential appreciation of 85.7%, the second highest on the list.
The targets for MTN and Aradel various extensively, exhibiting that brokers usually anticipate their costs to rise however disagree on how far they might go.
Dangote Sugar stays amongst main picks
Dangote Sugar obtained optimistic suggestions from Blue Marina, Arthur Steven, First Securities, and Futureview.
- Their targets ranged from N87.88 to N102, producing a mean of N95.21. This represents a potential appreciation of 36% from N70.
Compared with ETI, MTN and Aradel, the brokers have been extra intently aligned with Dangote Sugar’s worth.
Zenith, NASCON and AIICO lose assist
Zenith Bank recorded one of many greatest adjustments from the late-September assessment, as its optimistic suggestions fell from 4 to 2.
- Cowry and First Securities stay optimistic. First Securities locations Zenith’s truthful worth at N149.37, representing a potential worth achieve 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 worth elevated. Its goal remained unchanged at N147.88, however the inventory rose from N128.40 in September to N134.70 in October. This lowered the potential achieve from 15.2% to 9.8%, prompting Futureview to vary its suggestion from Buy to Hold.
- Arthur Steven takes a extra unfavourable place, score Zenith Sell with a goal of N102, which is about 24% under the October reference worth. 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 worth improve.
- NASCON’s lack of assist was extra clearly pushed by its rising share worth. 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 outcome, the potential worth achieve narrowed from 32.6% to 12.3%, main the dealer to maneuver NASCON from Upside to Neutral.
- Blue Marina and Futureview stay optimistic 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 the same sample. Its worth elevated from N3.77 to N4.14, whereas Blue Marina’s goal remained unchanged at N4.86. This lowered the anticipated worth achieve from 28.9% to 17.4%, prompting the dealer to maneuver the inventory from Buy to Hold.
Futureview stays optimistic 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 enhancing money circulate, decrease debt and a return to optimistic retained earnings.
- Access Holdings, BUA Cement and Dangote Sugar have extra intently aligned targets, whereas the broad goal ranges for ETI, MTN Nigeria and Aradel require larger warning.
Investors also needs to take note of entry costs. The adjustments in Zenith Bank, NASCON, and AIICO present {that a} good inventory can lose its Buy score after its worth rises and reduces the chance for additional positive aspects.
Broker suggestions ought to subsequently be thought of alongside earnings, money circulate, debt, and valuation.
