The Nigerian equities market may have extended its profit-taking phase, but analyst sentiment tells a different story. Despite recent declines in the benchmark indices, Capital Market Operators (CMOs) largely maintained their Buy recommendations across fundamentally strong stocks, signalling confidence that the current correction is driven more by valuation resets and portfolio rebalancing than by any deterioration in corporate fundamentals.
The banking sector continues to dominate institutional preference, with ACCESSCORP, ZENITHBANK, FIRSTHOLDCO, FCMB, UBA and ETI attracting broad positive ratings. Constructive recommendations also persisted across selected industrial, oil & gas, consumer goods and ICT counters, reflecting expectations of resilient earnings, stronger capital positions and attractive dividend prospects.
Looking ahead, the market is expected to remain selective as investors balance elevated fixed-income yields against improving equity valuations. Attention is likely to shift toward second-quarter earnings expectations, macroeconomic developments, and policy signals that could influence institutional positioning.
While near-term volatility may persist, analysts believe the ongoing correction presents opportunities to accumulate fundamentally sound stocks ahead of the next earnings cycle, suggesting that conviction in the Nigerian equity market remains intact despite recent price weakness.
Banking Sector
Analysts Stay Bullish on Banks Despite Market Correction and Diverging Calls on Select Names
Analyst sentiment toward the banking sector remained broadly constructive this week, even as banking stocks came under pressure during the market-wide selloff. Capital Market Operators (CMOs) largely maintained their positive long-term outlook, reaffirming confidence in the sector’s earnings resilience, stronger capital buffers following recapitalisation, and attractive dividend prospects.
ACCESSCORP remained the strongest consensus Buy across the market, attracting Buy recommendations from eight research houses, while only PAC Research maintained a Hold rating. Similarly, ZENITHBANK continued to command widespread institutional confidence with Buy recommendations from Bancorp Securities, Meristem, Lead Capital, CardinalStone, Coronation and Investment One, while Afrinvest retained an Accumulate rating.
FIRSTHOLDCO sustained positive momentum following its recent capital-raising exercise, receiving Buy recommendations from Bancorp Securities, Afrinvest, Meristem, Lead Capital, Apel, and Coronation, while Investment One maintained an Accumulate rating. PAC Research remained cautious, maintaining a Hold recommendation and suggesting near-term price consolidation.
Sentiment on GTCO remained constructive but divided. Buy recommendations from Bancorp Securities, Meristem, Lead Capital, CardinalStone and Coronation outweighed Sell ratings from Apel and PAC Research, while Afrinvest continued to place the stock Under Review.
Analysts also remained optimistic on FCMB, FIDELITYBK, UBA, ETI, and WEMA, although recommendations reflected greater selectivity following recent market volatility. Meanwhile, STERLINGNG continued to receive mixed views, with Buy ratings from Meristem offset by Sell recommendations from Apel and an Under Review stance from Afrinvest.
Consumer Goods Sector
Analysts Remain Selective as Market Leaders Continue to Attract Institutional Support.
Analyst sentiment across the consumer goods sector remained moderately positive, although stock-specific positioning continued to dominate recommendations amid ongoing valuation adjustments.
NB retained its position as the sector’s leading consensus Buy, supported by positive recommendations from Bancorp Securities, Afrinvest, Meristem and Lead Capital. Coronation placed the stock Under Review, while Investment One maintained a cautious stance pending further clarity on earnings.
DANGSUGAR continued to enjoy favourable sentiment, attracting Buy recommendations from Meristem, Lead Capital and Investment One despite Hold ratings from Bancorp Securities, Apel and PAC Research and an Under Review recommendation from Afrinvest.
GUINNESS maintained broad institutional support, while INTBREW continued to receive mixed recommendations, with PAC Research maintaining a Sell rating despite Buy calls from Bancorp Securities, Afrinvest and Lead Capital.
NESTLE remained cautiously positive as Meristem and Lead Capital upgraded their outlook to Buy, although Investment One retained a Reduce recommendation.
Industrial Goods Sector
Positive Long-Term Outlook Persists Despite Valuation Differences Across Cement Stocks
Analyst sentiment within the industrial goods sector remained constructive despite continued valuation divergence among the major cement producers.
WAPCO remained the sector’s preferred pick, supported by Buy recommendations from Bancorp Securities, Meristem, Lead Capital, CardinalStone and Investment One. However, Afrinvest maintained a Sell recommendation while Coronation placed the stock Under Review.
DANGCEM also retained strong institutional backing, with Buy recommendations from Bancorp Securities, Meristem, Lead Capital and Investment One. CardinalStone maintained a Sell recommendation, while several firms adopted Hold positions following the stock’s significant year-to-date appreciation.
BUACEMENT continued to generate the widest range of opinions. Meristem and Lead Capital retained Buy recommendations, while Afrinvest maintained a Reduce rating and Investment One continued to recommend Sell, suggesting analysts remain divided over the stock’s near-term upside.
Oil and Gas Sector
Analysts Continue to Prefer Upstream Energy Plays Despite Weak Market Performance
Analyst sentiment across the oil and gas sector remained positive despite continued profit-taking in several energy counters during the week.
ARADEL remained the sector’s strongest consensus Buy, receiving positive recommendations from Bancorp Securities, Afrinvest, Meristem, Lead Capital and Investment One. Apel and PAC Research maintained Hold ratings.
SEPLAT continued to enjoy favourable institutional support, with Buy recommendations from Bancorp Securities, Meristem and CardinalStone, while Investment One retained an Accumulate recommendation. Hold ratings from Afrinvest, Lead Capital, Apel and PAC Research reflected a more measured near-term outlook.
CONOIL maintained a constructive bias following Buy recommendations from Meristem and Lead Capital, although Investment One maintained a Sell recommendation.
OANDO also remained under pressure, attracting Under Review recommendations from Bancorp Securities and Afrinvest and a Sell recommendation from Lead Capital.
Insurance Sector
Positive Long-Term Positioning Continues Ahead of Recapitalisation Deadline.
Analyst sentiment across the insurance sector remained broadly constructive as investors continued positioning ahead of the industry’s recapitalisation deadline.
AXA Mansard maintained one of the strongest recommendation profiles, supported by Buy ratings from Bancorp Securities, Afrinvest, Meristem and Lead Capital, while PAC Research retained a Hold recommendation and Coronation placed the stock Under Review.
AIICO received positive recommendations despite Afrinvest maintaining a Sell rating.
Conglomerate, ICT, and Agriculture Sectors
Selective Opportunities Persist as Analysts Focus on Fundamentals.
Analyst sentiment across the conglomerate, ICT and agriculture sectors remained mixed, with investors continuing to favour companies exhibiting resilient earnings and attractive valuations.
TRANSCORP retained broad institutional support, attracting Buy recommendations from Bancorp Securities, Meristem, Lead Capital, CardinalStone and Apel despite a Hold recommendation from PAC Research.
Within the ICT sector, MTNN continued to rank among the market’s strongest consensus Buy recommendations, despite Hold ratings from Apel and PAC Research.
AIRTELAFRI continued to divide opinion, attracting Buy and Accumulate recommendations from CardinalStone and Afrinvest respectively, while Investment One maintained a Sell recommendation and several firms retained Hold ratings.
In agriculture, analyst sentiment remained mixed. OKOMUOIL continued to polarise research houses, with Buy recommendations from Bancorp Securities, Meristem and Lead Capital contrasting with Reduce ratings from Afrinvest and Investment One and a Sell recommendation from CardinalStone.
