Dangote Cement Jumps by 9.5%, Analysts Set Higher Target Price

Dangote Cement Jumps by 9.5%, Analysts Set Higher Target Price

In a race towards a higher target price, Dangote Cement Plc saw a spike of 9.5% in its market value, driven by investors’ positive bets on the company shares. 

According to trading data obtained from the Nigerian Exchange, the cement company’s share price surged to N575 on Friday as 2.023 million units valued at N1.145 billion were traded.

The positive price movement lifted the cement company’s market value higher by 9.50% week on week, nearing its highest valuation in 52 weeks.

At the close of trading session on Friday, the Nigerian Exchange repriced Dangote Cement Plc.’s 16.873 billion shares outstanding to N9.702 trillion, a 0.34% below its highest valuation in 12 months. 

In a latest report, equity analysts at CardinalStone Securities Limited announced N661.49 as Dangote Cement target price.

With a buy recommendation, the investment firm said DANGCEM’s growth momentum should extend into Q3’25, supported by resilient domestic demand and pricing stability.

Equity analysts indicated they expect solid volume performance from the Nigerian operations, albeit lower sequentially, as the third quarter typically records softer production levels due to the impact of the rainy season on construction activities.

Nonetheless, the cement volumes from Dangote are expected to come in higher on a year-on-year basis, buoyed by ongoing public-sector demand.

Analysts said performance across the Pan-African segment has been more subdued, reflecting persistent geopolitical and liquidity constraints in key markets, which could weigh on growth for that division.

CardinalStone Securities Limited said pricing strength in the Nigerian segment should offset part of the weakness. “While price hikes have moderated in recent quarters, average revenue per tonne is likely to print higher year on year in Q3 ’25, sustaining topline traction.”

Further upsides stem from an increase in exports of clinker from Nigeria to neighbouring countries, supported by the African Continental Free Trade Agreement (AfCFTA).

Analysts expressed that Dangote Cement operational efficiency remains a key driver of resilience.  The alternative fuel programme continues to gain traction, with the thermal substitution rate reaching 9.8% in H1’25 versus 8.30% in H1’24.

CardinalStone Securities said the deployment of 3,100 CNG-powered trucks, which is part of a broader plan to phase out AGO trucks by 2027, should temper pressures from energy-related costs in the quarter.

Analysts noted currency appreciation positions the company to report foreign-exchange gains, contrasting with the losses recorded in Q3’24.

Overall, the combination of stable pricing, cost containment, and FX gains should support strong earnings delivery for both Q3’25 and 9M’25 for the cement company, CardinalStone said. Dangote Cement Jumps by 9.5%, Analysts Set Higher Target Price