NGX must hold stocks with double digit upside for the year

In an environment where market volatility presents both challenges and opportunities, identifying equities with double-digit upside potential has become more crucial than ever.

Last week, the Nigerian equities market recorded its first weekly decline of the year.

Despite a resurgence in buying interest toward the end of the week, profit-taking activities in key stocks, including Dangote Cement (DANGCEM), triggered a mid-week downturn.

Consequently, the NGX All-Share Index (NGXASI) fell by 2.94%, closing at 102,353.68 points (down from 105,451.06 points in the previous week).

This decline brought the market capitalization to N62.85 trillion, representing a loss of N1.45 trillion in investor wealth and contributing to a year-to-date (YTD) return of -0.56%.

Despite the recent underperformance, bright spots remain for savvy investors looking to realign their portfolios for 2025.

Analysts have identified must-hold stocks with strong upside potential, driven by intrinsic valuations, industry trends, and strategic growth expectations.

However, it is important to note that analysts’ target prices are dynamic and subject to revision based on changes in company fundamentals, macroeconomic factors, and market conditions.

This highlights the importance of continuous monitoring to adapt to evolving circumstances.

Loading up a portfolio with stocks offering attractive risk-to-reward profiles is a strategy that could set the stage for a winning year ahead.

Here are the stocks investors should watch in 2025:

FBNH 

FBN Holdings stands out as a compelling investment for 2025, according to Arthur Steven Asset Management’s January 20, 2025, stock recommendation report.

The analysts’ target price of N49 represents an impressive 68% upside from last week’s closing price.

ACCESSCORP

ACCESSCORP

Access Holdings closed last week at N24.21, delivering a modest YTD return of +0.84%.

Analysts have highlighted the stock as one of the top picks for 2025, with target prices from Futureview and Arthur Steven Asset Management set at N30.15 and N49.30, respectively, implying a projected upside of 64%.

GTCO 

Guaranty Trust Holding Company (GTCO) closed last week at N58, offering a potential upside of 52%, based on analysts’ target prices.

Dangote Cement 

Dangote Cement remains a stock to watch, despite navigating a challenging operating environment. Futureview and Arthur Steven Asset Management have issued buy ratings, with target prices of N495 and N507.50, respectively, representing a 27% upside potential from last week’s closing price of N400.

Trading at 52.42% of its 52-week high, the stock presents a strong case for a rebound as market conditions stabilize.

However, with a beta of 2.12, investors should expect heightened volatility, making it more suitable for those with a higher risk tolerance.

The first nine months of 2024 reveal a more challenging landscape for Dangote Cement, with rising operational costs eating into profit margins.

Aradel closed last week at N556, presenting an upside potential of 28%, based on Futureview’s target price of N713.13.

Although the stock recorded a YTD loss of -7.33%, it trades at 65% of its 52-week high of N850.10, leaving ample room for recovery as investor sentiment strengthens.