Nigerian stocks have continued to see strategic buy recommendations, with Cowry Research issuing bullish calls on five equities, forecasting upside potentials ranging from 13.7% to as high as 96.2%.
In its latest Weekly Stock Recommendations, the research firm highlighted Cadbury Nigeria Plc, Eterna Oil Plc, Ecobank Transnational Incorporated, International Breweries Plc, and Stanbic IBTC Holdings Plc as buy opportunities, citing robust price upside projections based on current fundamentals and technical analysis.
Stanbic IBTC Leads with 48% Short-Term Upside and 96% Target Upside
Stanbic IBTC Holdings Plc topped the recommendation list with a projected 96.2% upside, targeting a price of N96.20, up from its current N65.00. The bank, which boasts an earnings per share (EPS) of N6.25 and a price-to-earnings (P/E) ratio of 10.39x, was recommended a stop-loss at N55.30 and a short-term take profit at N74.80, reflecting an immediate 48% upside.
Cadbury Nigeria and Ecobank Also Offer Strong Gains
Cadbury Nigeria Plc and Ecobank Transnational Incorporated (ETI) followed closely, both with 60% potential upside. Cadbury, currently priced at N39.00, is forecast to reach N60.80, while ETI, trading at N28.70, has a target price of N45.40.
Cadbury’s P/E ratio of 14.49x and strong forecast EPS of N4.20 support Cowry’s bullish stance, while ETI’s relatively low P/E ratio of 5.46x and significant book value per share of N121.99 make it an attractive play for investors seeking undervalued financial stocks.
Eterna Oil and International Breweries Present Moderate Gains
Eterna Oil Plc is tipped for a 40% upside, with a price target of N69.90 from its current N44.00. The oil firm’s high P/E ratio of 94.82x indicates aggressive forward expectations, while its forecast EPS of N0.74 supports Cowry’s near-term bullish view.
International Breweries Plc rounds off the list with a more modest 13.7% upside, targeting N13.70 from its current N9.05. Despite its higher P/E ratio of 30.76x, the company’s relatively low book value of N4.90 and current depressed stock price present a tactical play for risk-tolerant investors.
Key Takeaways for Investors
All five stocks are recommended as buys, with varying levels of upside potential. While Stanbic IBTC Plc and Cadbury Nigeria Plc lead in potential gains, Ecobank Transnational Plc stands out for investors favouring financial services stocks with low valuation multiples. However, Cowry advises investors to apply short-term stop losses and profit targets as part of disciplined trading strategies to manage market risks.
