CSL Stockbrokers Top 10 Stock Picks for Upside Potentials
ACCESSCORP | BUY | TP: ₦43.88 | Rated – Access Holdings Plc, Nigeria’s largest financial services group by assets, presents a compelling investment opportunity, supported by decent financial performance, strategic capital initiatives, and a diversified business model.
As of financial year 2024, CSL Stockbrokers highlighted that the Group maintained a strong capital adequacy ratio of 20.46%.
Access Holdings asset quality is noted to remain healthy, with a Q1 2025 annualised cost of risk (COR) of 0.8%, though analysts said they expect a moderate increase due to the end of the forbearance regime.
Valuations are attractive, according to CSL Stockbrokers, with a price-to-book value (PBV) of 0.40x. The Group also reported an impressive Q1 2025 annualised return on average equity (RoAE) of 29.6%.
In line with the Central Bank of Nigeria’s directive, Access Holdings confirmed it is currently compliant with the single obligor limit requirement.
Regarding the regulatory forbearance on credit facilities, the Group has stated it will fully comply with the Central Bank’s directive by 30 June, 2025 and remains committed to maintaining strong capital buffers while continuing to pay dividends to shareholders.
“We have accounted for increased provisioning but still find valuations attractive”, the investment firm said in its stock recommendation note.
GTCO | BUY | TP: ₦115.43 | Rated – GTCO’s transition to a holding company structure has allowed it to diversify its revenue streams across banking, payments, pensions, and fund management, enhancing resilience and growth prospects.
CSL Stockbrokers stated that the company’s capital adequacy ratio stood at a robust 39.3% as of 2024. The bank reports healthy asset quality with Q1 2025 annualised cost of risk (COR) of 1.7% and NPL ratio of 5.2% as of 2024 indicating prudent risk management practices.
Balance sheet has been substantially de-risked and currently has no forbearance loans, according to the investment firm.
Analysts said GTCO maintains one of the lowest cost-to-income ratios in the industry with CIR ex-provisions at 28.1% in Q1 2025 reflecting its disciplined approach to cost management and operational excellence.
GTCO rates well with respect to asset quality, corporate governance, capital adequacy, cost management and stable and attractive dividend payment, according to the stock recommendation note.
Recent listing of its shares on the London stock Exchange (LSE) has further improved the stock’s appeal.
WEMABANK | Not Rated – Wema Bank, a strong Tier-2 financial institution with solid growth potential, is well positioned for continued performance in 2025, CSL Stockbrokers stated.
The investment noted that Wema Bank is on track to deliver a robust full-year result, with profitability expected to strengthen further.
In H1 2025, Wema Bank recorded a 64.76% year-on-year increase in Interest Income to ₦240.66 billion, while Pre-tax Profit surged by 229.12% to ₦100.60 billion, reflecting strong operational efficiency and sustained earnings momentum.
WAPCO | BUY | TP: ₦199.14 | Rated – Wapco is well positioned for sustained growth in the second half of 2025, driven by increasing cement demand and effective cost management initiatives, according to CSL Stockbrokers.
The investment firm added that WAPCO is on track to deliver a strong full-year performance, with profit growth expected to remain robust.
In the first half of 2025, Wapco’s Pre-tax Profit surged by 328.3% year on year to ₦199.74 billion, highlighting its strong earnings momentum. Analysts said consistent history of dividend payments continues to bolster investor confidence.
Currently, the company trades at an EV/EBITDA multiple of 6.30x—well below the EMEA industry average of 10.30x—indicating room for potential valuation upside.
CADBURY | BUY | TP: ₦83.08 | Rated – Cadbury Nigeria Plc engages in manufacturing and selling branded fast moving consumer goods in Nigeria.
It operates through three segments: Refreshment Beverages, Confectionery, and Intermediate Cocoa Products. CADBURY is currently improving operating efficiency via sound cost management and balance sheet optimization.
Valuation remains attractive, with an EV/EBITDA of 8.8x—below the coverage average of 11.7x. Cadbury recorded solid performance in the first half of the year and remains on track to deliver a strong 2025 performance.
In H1 2025, Cadbury recorded impressive Revenue growth of 50.2% year-on-year to ₦77.25 billion, while Profit Before Tax rose by 204.7% to ₦14.54 billion, reflecting solid top-line performance and good operational efficiency.
NESTLE | BUY | TP: ₦2,327.22 | Rated – Nestle Nigeria Plc continues to sustain its impressive performance from Q4 2024, driven by growing Revenue and good cost management.
It recorded Revenue growth of 42.8% year-on-year to ₦581.12 billion and Pre-tax Profit of ₦88.40 billion (+135% y/y) in H1 2025. Valuation remains attractive, with an EV/EBITDA of 8.1x—below the coverage average of 11.7x and EMEA average of 37.0x.
AIRTELAFR | BUY | TP: ₦3,230.33 | Rated – Airtel Africa is projected to report strong Revenue and Profit growth, driven by recent tariff hikes across key markets that are expected to boost topline performance and support earnings.
The company’s cost reduction initiatives are beginning to yield positive results, while its strategy to localize debt within operating countries is also showing early benefits by reducing exposure to foreign exchange volatility.
These strategic moves are anticipated to drive increased investor interest and market activity around the stock.
In Q1 2026 earnings release, Airtel Africa’s Revenue jumped by 22.4% y/y to US$1.42 billion while Pre-tax Profit surged by 268.9% y/y to US$273 million, highlighting its strong earnings momentum.
MTNN | BUY | TP: ₦555.33 | Rated – MTN’s recent tariff increases are expected to drive top-line growth and support profit margins.
The company’s cost management initiatives are beginning to yield positive results, while the renegotiation of tower contracts has helped reduce foreign exchange losses. These improvements are set to support a recovery in both profitability and shareholders’ funds.
We believe that the combination of a stronger financial position and the anticipated resumption of dividend payments will enhance investor sentiment and drive renewed interest in the stock in the coming months.
In H1 2025, MTN recorded Revenue growth of 54.5% y/y to ₦2.38 trillion, while Pre-tax Profit rose to ₦622.26 billion from a Pre-tax Loss position of ₦751.29 billion in H1 2024. This reflects its solid top-line performance and effective cost management.
NAHCO | Not Rated – NAHCO is well positioned for sustained growth into FY 2025, supported by the continued recovery in air travel, increased cargo volumes, and enhanced operational efficiency.
The company is on track to deliver a strong full-year performance, driven by the expansion of its service offerings and strategic partnerships across key airports.
In H1 2025, NAHCO recorded impressive triple-digit Revenue growth of 111.41% year-on-year to ₦32.33 billion, while Pre-tax Profit rose by 96.07% to ₦11.79 billion, reflecting solid top-line performance and effective cost management.
CUSTODIAN | Not Rated – Custodian Investment Plc is an investment holding company with significant interests in life and non-life insurance, pension fund administration, trusteeship and property holding companies, with five subsidiaries span across these operating interests.
The company is on track to deliver a strong full-year performance with its H1 2025 performance showing an impressive 50.2% year-on-year growth in gross revenue to ₦124.28 billion—indicating strong growths across insurance service revenue, sales, and interest income—while profit after tax for the company advanced by 17.8% year-on-year to ₦26.39 billion.
Custodian forecasts its gross revenue and profit after tax to reach ₦175.81 billion and ₦49.41 billion by 9M 2025. Noteworthy, the company has a good track record of corporate action declarations with good dividend payment and currently trades at a discount (PBV: 1.72x) compared to its EMEA peers (PBV: 1.96x). US 10-Year Yield Sits at 4.33% Ahead Fed Rate Decision
