Cadbury Nigeria Shares Hit Oversold, Analysts Now See Upside

Cadbury Nigeria Shares Hit Oversold, Analysts Now See Upside

Cadbury Nigeria Plc has been upgraded to join stocks on the buying recommendation lists, as analysts consider the consumer goods oversold. The consumer goods company market value has been dragged down by investors that exited their positions.

Despite a strong earnings harvest, trading activities have remained unimpressive, but analysts’ estimates suggest Cadbury Nigeria Plc has hit an oversold region. Equity analysts at CSL Stockbrokers Limited kept the stock target price at N83.03 at a reference market price of N69.60.

With a target price set at N71.98, equity analysts at Meristem Securities Limited are now anticipating 15.08% upside at a reference stock market price of N62.55.

Data from the Nigerian Exchange showed that Cadbury Nigeria Plc is trading at N62.55 on Wednesday, the lowest in the last seven trading sessions.

Despite earnings momentum, stockholder sentiment remained negative on the consumer goods players.  In its 9M-2025 earnings result, Cadbury Nigeria returned to profitability. The consumer goods company posted N9.6 billion, reversing N11.86 billion in net loss reported in the comparable period in 2024.

Cadbury Nigeria Plc Revenue grew by 33.2% year on year to ₦119.25 billion from ₦89.53 billion in the comparable period in 2024. Growth was mainly supported by domestic sales, which surged by 44.8% year on year to ₦114.20 billion from ₦78.87 billion in 9M 2024. 

Analysts noted that an improved cost efficiency strengthens margins as the company continue to look inward to drive growth.  The company’s reduced FX exposure and sustained domestic demand provide a solid foundation for earnings resilience and medium-term growth

Cost of Sales rose 22.4% year on year to ₦91.50 billion from ₦74.76 billion, slower than revenue growth, leading to a 6.8 percentage point’s improvement in the cost-to-sales ratio to 76.7% from 83.5% in the equivalent period in 2024.

Consequently, Gross Profit surged 87.9% year on year to ₦27.75 billion from ₦14.77 billion in 9M 2024, with the Gross Margin expanding to 23.3% from 16.5% within 12 months.

“Following last week’s profit-taking, CARDBURY has approached a bargain price for entry for investors seeking a growth stock with value for the long term, and with an upside potential of 15.08 to our target price of 71.98, we revise our recommendation from a HOLD to BUY,” Meristem Securities Limited said in a stock note.   Zenith Bank Price Target Sets at N81 after Q3 Earnings