By Charles Pemu 
LAGOS—Analysts at Cowry Asset Management have issued a bullish “Buy” recommendation on five major stocks listed on the Nigerian Exchange (NGX), projecting significant short-term upsides for investors based on strong earnings forecasts and attractive market valuations.
In a market report published over the weekend, the investment advisory firm identified AccessCorp, Aradel Holdings, NAHCO, Nigerian Breweries, and MTN Nigeria as top picks for the week starting October 6, citing fundamental strength and potential for near-term price rallies.
AccessCorp Tops the List with 60% Upside
AccessCorp Plc offers the highest potential return on the list. Currently trading at N26.5, Cowry analysts have set a price target of N42.4, translating to a massive 60% potential upside.
The stock is considered highly undervalued, reflected by its low Price-to-Earnings (P/E) ratio of 5.43x. The bank’s forecast Earnings Per Share (EPS) of N7.81 is significantly higher than its current EPS of N4.88, indicating robust growth. For short-term risk management, the stop-loss is set at N22.5, with a take-profit level of N30.5.
Solid Fundamentals and Growth Potential
| Stock | Current Price (N) | Target Price (N) | Potential Upside | P/E Ratio | Key Driver |
| AccessCorp | 26.50 | 42.40 | 60% | 5.43x | Undervalued, Strong EPS Growth |
| Nigerian Breweries | 76.00 | 106.40 | 40% | 26.74x | Resilient Performance, Steady Growth |
| MTN Nigeria | 425.00 | 569.50 | 34% | 21.51x | Strong Earnings, Telecom Giant Value |
| NAHCO | 106.00 | 139.90 | 32% | 23.27x | Consistent Earnings Growth, Aviation Rebound |
| Aradel Holdings | 650.10 | 845.10 | 30% | 19.54x | Solid Fundamentals, Robust Oil & Gas Performance |
Table: Cowry Asset Management Stock Recommendations and Upside Potential
Detailed Stock Insights
- Nigerian Breweries Plc (NB): The consumer goods giant is trading at N76 with a price target of N106.4, promising a 40% potential gain. The market’s confidence is reflected in its P/E ratio of 26.74x, while its EPS is expected to grow from N2.84 to N3.98.
- MTN Nigeria Plc: The telecom leader, currently priced at N425, has a price target of N569.5, implying a 34% upside. Despite a negative book value per share of -N2.02, analysts noted the strength in earnings, with EPS projected to increase from N19.76 to N26.48.
- NAHCO: The Nigerian Aviation Handling Company, a key infrastructure player, is expected to climb from N106 to N139.9, offering a 32% upside. The recommendation is driven by the consistent earnings growth (EPS forecast to rise to N6.01) despite a P/E ratio of 23.27x.
- Aradel Holdings Plc: This oil and gas major, trading at N650.1, is projected to reach N845.1, a 30% potential gain. The company boasts strong fundamentals, including a high book value per share of N334.5 and a robust EPS forecast of N43.24.
Cowry Asset Management’s outlook for October favors stocks with strong earnings, attractive valuation metrics, and significant near-term upside, advising investors to diligently use stop-loss and take-profit strategies to manage risk. The approaching third-quarter earnings season is expected to provide further momentum for these recommended stocks.