Top 10 Stock Pick for May –CSL Stockbrokers
Equities analysts at CSL Stockbrokers’ top rated stocks for the month of May have just been released. The investment firm has estimated target prices for each top stock across sectors, guiding investors to take positions due to expected upside potential.
So far, the Nigerian Exchange has recorded significant capital gain as bargain-hunting activities improved sharply. CSL Stockbrokers highlighted that from a low of 103,852 points on April 16, 2025, the NGX All-Share Index has rebounded strongly, surpassing the 106,000-point mark.
“This upward movement reinforces the prevailing positive bias that has supported the market in recent weeks”. According to CSL, the continued upward trend in large- and mid-cap stocks in May 2025 is expected to sustain investor confidence and support short-term market stability.
Stockbrokers stated that investor interest is likely to remain focused on stocks, with interim dividend announcements driving cherry-picking and bargain-hunting activities.
It also highlighted that elevated yields in the fixed income market pose a downside risk to the equities rally, as institutional investors rebalance their portfolios in response to shifting market conditions.
Additionally, the recent decline in global crude oil prices—driven by concerns over a potential global economic slowdown—remains a headwind for broader market sentiment, while the bias around global crude oil oversupply might continue to hinder foreign investor sentiments in the domestic equities market in the near term.
OKOMUOIL | BUY | TP: ₦645.30 | Rated— OKOMUOIL trades at a P/E of 11.62x, a considerable discount from the EMEA peer average of 14.03x. Okomu Oil is strategically positioned in defensive product segments—crude palm oil (CPO) and rubber—and continues to deliver strong earnings by capitalizing on the global CPO supply shortfall, where demand outpaces production.
Favourable pricing dynamics, operational efficiency, and resilient demand have driven profitability. Additionally, its consistent dividend payments over the past five years highlight strong financial health and a commitment to delivering shareholder value.
PRESCO | BUY | TP: ₦931.70 | Rated – The company operates within the defensive agricultural sector, with a strong emphasis on crude palm oil (CPO) and its derivatives, positioning it to benefit from favourable market trends.
With global CPO consumption consistently outstripping production, a persistent supply-demand imbalance has created upward pressure on prices. The company is well-equipped in terms of production capacity and operational scale to take full advantage of this shortfall.
In addition to its robust fundamentals, the company has demonstrated a solid commitment to shareholder value, evidenced by a consistent track record of dividend payments over the past five years— highlighting both financial stability and management’s focus on long-term returns. PRESCO trades at an EV/EBITDA of 5.60x, a considerable discount from the EMEA peer average of 8.74x
AIRTELAFRICA | BUY | TP: ₦3,230.33| Rated – AIRTELAFRI is projected to report strong revenue and profit growth in its upcoming financial results, driven by recent tariff hikes across key markets, which are expected to enhance top-line performance and cushion earnings.
The company is also making progress in localizing its debt within operating countries, a move aimed at reducing exposure to foreign exchange volatility. These initiatives are expected to stimulate increased market activity around Airtel Africa.
Additionally, rising mobile data consumption—fueled by growing smartphone penetration and the expansion of digital services—continues to underpin the company’s growth momentum.
CADBURY | BUY | TP: ₦44.24 | 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 7.1x—below the coverage average of 9.9x.
From a technical perspective, the 50-day moving average of ₦26.97 recently made a crossover with the 200-day moving average at ₦24.51, forming a golden cross—a bullish signal that supports a short-term price uptrend.
UNILEVER | BUY | TP: ₦51.21 | Rated – The stock currently trades at a price-to-book (P/BV) ratio of 2.72x, significantly below the peer average of 5.71x, highlighting its relative undervaluation.
The recent market rally has been driven by positive investor sentiment, fueled by improved operating efficiency that has strengthened both revenue and profit margins amid declining operating expenses.
Strategically, the company’s recent divestment from the home care segment aligns with management’s focus on core business areas, enhancing its long-term positioning.
On the technical side, a 14-day Relative Strength Index (RSI) of 56.04 suggests room for further upside before entering overbought territory. Meanwhile, the recent formation of a golden cross—with the 50-day moving average (₦39.99) crossing above the 200-day moving average (₦38.16)—indicates strong bullish momentum and supports the potential for a sustained near-term price uptrend.
BETAGLASS | Not Rated – The company manufactures, distributes, and sells glass bottles and containers in Nigeria, serving a wide range of industries including soft drinks, breweries, wine and spirits, pharmaceuticals, food, and cosmetics.
It also exports to several West African countries, including Ghana, Burkina Faso, Côte d’Ivoire, Sierra Leone, Guinea, and Liberia. The stock is highly liquid and demonstrates strong profitability, with a return on assets (ROA) of 11.3% and return on equity (ROE) of 23.3%.
ACCESSCORP | BUY | TP: ₦42.14 | Rated – Access Holdings Plc, Nigeria’s largest financial services group by assets, presents a compelling investment opportunity, underpinned by robust financial performance, strategic capital initiatives, and a diversified business model. Capital adequacy remains strong at 20.46% as of FY 2024.
Asset quality ratios are healthy (Q1 2025 annualised Cost of Risk (COR) of 0.8%). Valuations remain attractive (PBV 0.24x). Q1 2025 annualised RoAE of 29.6%.
GTCO | BUY | TP: ₦80.32 | 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.
The company’s capital adequacy ratio stood at a robust 39.3% as of FY 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 FY 2024 indicating prudent risk management practices.
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 stable and attractive dividend payment and valuations remain compelling (PBV 0.82x).
UBA | BUY | TP: ₦46.40 | Rated – UBA’s solid financial metrics, strategic regional diversification, and commitment to delivering shareholder value position it as a leading player in Africa’s banking sector. Its consistent performance and proactive management make it an attractive option for investors seeking stable and sustainable returns in emerging markets.
The bank’s operations outside Nigeria now contribute 52% (FY 2024) of group revenue, up from 31% in 2019, highlighting successful regional expansion and revenue diversification.
The bank reports healthy asset quality ratios with Q1 2o25 annualised Cost of risk of 0.6% and FY 2024 NPL ratio of 5.6%. Increasing and attractive dividend yield and valuations remain compelling with PBV ratio of 0.33x
ZENITHBANK | BUY | TP: ₦59.69 | Rated – A leading, well-capitalized bank with a strong track record of profitability, robust asset quality (Q1 2025 annualised COR of 1.8%), and solid corporate governance.
Its focus on digital innovation, diversified revenue streams, and prudent risk management positions it to benefit from Nigeria’s growing financial services demand and rising interest rate environment.
With attractive valuation metrics (PBV 0.48x) and consistent and attractive dividend payouts, Zenith offers a compelling long-term value proposition for investors seeking exposure to West Africa’s banking sector. #Top 10 Stock Pick for May –CSL Stockbrokers Selloffs: Nigeria’s Sovereign Eurobond Yield Rises to 10.6%
