Analysts at Cowry Asset Management have issued bullish recommendations on five major stocks listed on the Nigerian Exchange (NGX), projecting significant short-term upsides for investors based on recent earnings, price movements, and market valuations.
A market report published by the investment advisory firm over the weekend advised investors to “Buy” shares in Aradel Holdings, AccessCorp, NAHCO, Nigerian Breweries, and MTN Nigeria for this week, starting October 6, citing favourable earnings outlooks, attractive valuation metrics, and potential price rallies in the short term.
AccessCorp offers highest potential return at 60%
According to the report published at the weekend, AccessCorp Plc topped the list in terms of short-term return potential. With the stock currently trading at N26.5, the analysts project a price target of N42.4, translating to a 60% potential upside.
AccessCorp’s forecast earnings per share (EPS) is N7.81, significantly higher than its current EPS of N4.88, indicating strong earnings growth. The bank’s Price-to-Earnings (P/E) ratio remains low at 5.43x, suggesting that the stock is undervalued compared to its market peers.
Cowry set a short-term stop-loss at N22.5 and a take-profit level of N30.5, reinforcing its optimism that the stock can deliver strong returns in the near term.
Aradel Holdings: Strong fundamentals, 30% upside
Aradel Holdings Plc, a major player in the oil and gas sector, also received a “Buy” recommendation. With a current market price of N650.1, analysts expect the stock to climb to N845.1, giving a 30% potential upside.
Aradel posted a robust EPS of N33.26 with a forecast increase to N43.24. Despite a relatively higher P/E ratio of 19.54x, the company boasts a strong book value per share (BV/S) of N334.5, reflecting solid fundamentals.
Short-term technicals place Aradel’s stop-loss at N552.59 and take-profit at N747.615.
NAHCO attracts investors with airport rebound story
Nigerian Aviation Handling Company (NAHCO), a key infrastructure player in the aviation space, is also on Cowry’s “Buy” list. The stock, currently priced at N106, is expected to reach a target price of N139.9, representing a 32% upside.
With a P/E ratio of 23.27x, NAHCO may seem slightly expensive at face value, but its consistent earnings growth—EPS of N4.56 forecast to grow to N6.01—makes it attractive. The BV/S of N8.92 supports investor confidence in its underlying asset strength.
Short-term risk and reward levels are marked at N90.1 (stop-loss) and N121.9 (take-profit).
Nigerian Breweries: Steady growth with 40% upside
Nigerian Breweries Plc, one of the country’s leading consumer goods firms, also features among Cowry’s top picks. The stock is trading at N76, with a price target of N106.4, pointing to a 40% potential gain.
The company’s current EPS stands at N2.84, expected to grow to N3.98, backed by resilient performance despite macroeconomic headwinds. Its P/E ratio is relatively high at 26.74x, reflecting the market’s confidence in its long-term profitability.
Investors are advised to monitor stop-loss at N64.6 and take-profit at N87.4.
MTN Nigeria: Telecom giant still offers value
Telecom leader, MTN Nigeria Plc, also earned a “Buy” call from Cowry analysts. Currently priced at N425, MTN has a price target of N569.5, implying a 34% upside.
Despite reporting a negative book value per share (-N2.02)—likely due to write-downs or revaluations—MTN’s earnings remain strong, with a current EPS of N19.76 projected to increase to N26.48. The stock’s P/E ratio of 21.51x places it within a fair valuation range for telecoms.
The stop-loss is set at N361.3 and take-profit at N488.8, ensuring investors manage risk effectively.
Mixed valuations, strong earnings outlook
Cowry Asset’s October 3 stock recommendation provides a cautiously optimistic view of the Nigerian equity market, favoring stocks with solid earnings, relatively low-price multiples, and significant near-term upside potential.
Investors are advised to implement stop-loss and take-profit strategies as part of risk management, while also keeping an eye on macroeconomic shifts that may affect valuations.
As the third-quarter earnings season approaches, recommended stocks could benefit further from positive financial results and improved investor sentiment.
I’m in support of your recommendations except Access Bank.