Lafarge Africa Delivers 90% Return, Recommends for Dec. Upside
Lafarge Africa Plc (Ticker: WAPCO) has delivered a 90% gain for shareholders who held the stock at the price of N70 at the beginning of the year to date.
The cement company lost 5% of its market value last week due to profit-taking activities. Traded against the trend on the Nigerian Exchange, WAPCO closed lower at N133 from N140 at the beginning as sell-side actors exited their positions ahead of Q4 earnings.
Equity analysts at Meristem Securities Limited recommend Lafarge Africa as a stock to buy with an expectation of more than 10% upside in December.
Meanwhile, the market value of Lafarge Africa Plc’s 16.107 billion outstanding shares reduces to N2.142 trillion, a significant discount to its highest valuation in 52 weeks.
Lafarge Africa had surpassed N2.485 trillion during the year before the cement stock pullback from the momentum that was steep, fast and furious.
At the current price, shareholders have gained 90% on top 2025 opening price and analysts have projected further upside in anticipation of a touch from Santa Claus rally.
Meristem Securities Limited set N154.79 as target price for the cement stock, according to equity research report released last week.
Lafarge Africa Plc reported an impressive performance in 9M:2025, sustaining the strong momentum seen since the start of the year, with revenue rising by +62.77% to N780.49 billion from N479.50 billion in 9M:2024.
Analysts at Meristem Securities Limited attributed the growth to improved production capacity and robust demand for cement from both infrastructure projects and residential construction. Cement sales increased +62.92%, while aggregates and concrete grew by +54.05% year on year. These growths were driven by significant improvements in core operations, according to analysts report.
“Following an impressive 9M:2025 performance, we maintain a positive revenue outlook for 2025.
“Demand for cement and building materials is expected to remain strong in Q4:2025 as construction activity typically peaks during the dry season, festive period, and year-end spending from both government and private sectors.
“We project revenue to exceed N1 trillion for the first time, supported by robust cement volumes and steady sales in concrete and aggregates”, Meristem Securities Limited said.
Analysts said strategic pricing, improved capacity utilisation, increased market penetration, and stable market conditions are expected to sustain topline momentum through year-end. This underpins the firm’s 2025 revenue forecast of N1.33 trillion with expected asset turnover at 0.85x.
Looking into the next full year, analysts expect 2026 revenue of N1.66 trillion, driven by pre-election spending that should boost government-related construction activity, alongside continued developments in the private sector.
“Based on our expected EPS of NGN18.94 and our target P/E of 8.17x we arrived at our target price of NGN154.79. This implies an upside potential of 10.57% compared to the company’s closing price of NGN140.00 on December 12, 2025. Hence, we recommend a BUY on the stock”, Meristem said.
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