Anchoria Securities Sets N1,400 Target Price for Geregu Power
Anchoria Securities Limited has recommended Geregu Power as one of the stocks to buy, with the target price set at N1,400, about 23% upside to its going market rate.
According to its stock market performance, Geregu Power Plc delivered a negative year-to-date return of about 1% due to restricted price movement as a result of thin trading activities.
The power-generating company has been unable to boost its shareholders’ wealth after post-listing monster rallies – a stock that was priced at N100 in Oct 2023 when it listed in the local bourse.
But since then, Geregu Plc has been quiet and rarely moves due to tightened investors’ sentiment. With a 18.52% free float rate, Geregu Power is compliant with Nigerian Exchange listing requirements.
With 76.4% interest, Femi Otedola stands as the single majority shareholder of the power-generating company as of Sept., 2025. Libreville Power Limited controls 5% of the company’s 2.5 billion outstanding shares.
Directors’ shareholding remains below 1%, leaving 18.52% free float at the open market. But this stock rarely trades, so the price rarely moves, according to historical data tracking obtained by MarketForces Africa.
The company delivered N25.097 billion in 9M-2025 period, a 3.75% increase from N24.189 billion in the equivalent period in 2024. Its revenue grew much faster at 16.77% year on year to N131.467 billion from N112.585 billion.
In its latest equity research coverage, Anchoria Securities Limited said Geregu Power Plc remains well-positioned to benefit from improving fundamentals in Nigeria’s power sector.
Kehinde Jones and Livinus Etim said in the equity report that the company has continued to deliver resilient profitability, supported by strong margins, disciplined cost management, and a favourable sector outlook.
The investment firm said with improving sector liquidity, policy reforms, and tariff adjustments on the horizon, Geregu offers attractive medium- to long-term upside at current price levels.
Operating profit expanded to ₦42.231 billion, while profit after tax rose to N25.098 billion, less than 4% above ₦24.2 billion posted in the equivalent period.
The balance sheet remains solid, with total assets rising by 12.2% to ₦273.2bn, although cash balances declined due to working capital pressures. Shareholders’ funds increased by 7.3%, reinforcing balance sheet resilience.
Geregu continues to post strong margins, with a gross margin of 44.7% and net profit margin of 23.2%, outperforming several peers. Profitability remains robust despite revenue moderation, highlighting operational efficiency.
Return ratios remain healthy, with ROAE at 31.8%, underscoring efficient capital deployment. Liquidity indicators are stable, with a current ratio of 1.14, broadly in line with industry averages.
At a current price of ₦1,141.50, Geregu trades at a 22.65% below Anchoria Securities Limited target price of ₦1,400.00.
Analysts said the elevated valuation reflects strong earnings quality, sector leadership, and improving structural dynamics within the power industry.
In 2025, Anchoria Securities Limited expect the company’s dividend to improve to ₦9.00 per share
“The Nigerian power sector is nearing an inflection point following approval of a phased repayment plan for the ₦4.0 trillion sector debt, aimed at restoring liquidity and financial discipline from December 2025.
“This initiative should improve cash flow visibility for GenCos like Geregu, strengthen balance sheets, and support new capacity investments.
“Further upside is expected from migration to cost-reflective tariffs, possible tariff adjustments in 2026, and ongoing reforms under the Electricity Act 2023, alongside transmission upgrades and improving gas dynamics”, Anchoria said.
Rated as a buy for clients, analysts said Geregu Power Plc offers compelling upside potential, supported by resilient earnings, improving sector liquidity, and favourable policy reforms.
The stock remains attractive for investors seeking exposure to Nigeria’s evolving power sector with strong medium-term growth prospects. Out-of-Pocket Health Spending Reduces in 2024 – Report
