Stock Recommendation: Zenith Bank, MTN Among Top 10 Pick for Dec.
Zenith Bank, MTN Nigeria and eight other companies with upside potential are among the top 10 stocks recommended by CSL Stockbrokers Limited to buy in December.
In December, the Nigerian equities market is expected to exhibit moderate upward momentum, driven by renewed investor confidence and typical year-end portfolio rebalancing, the investment firm said in its stock guide.
In its investors guide, CSL Stockbrokers noted that the country’s improving macroeconomic outlook is also likely to reinforce confidence among institutional investors thereby supporting a further strengthening of market sentiment towards year-end.
“We also anticipate renewed interest in companies that delivered robust 9M 2025 earnings performance, as investors seek good price entry points after the market dip in the prior month.
“Notably, positive sentiment is expected to build around fundamentally sound defensive bellwether stocks with a strong dividend-paying history, as investors rebalance their portfolios to position for potential corporate action announcements.”
The investment firm stated that the cost-basis reset provision within the CGT framework is expected to serve as an additional catalyst for improved equities market performance in December 2025.
ZENITHBANK | BUY | TP: ₦74.39 | Rated – A leading, well-capitalised bank with a strong track record of profitability. Its focus on digital innovation and prudent risk management positions it well to benefit from Nigeria’s growing demand for financial services and the prevailing high-interest rate environment.
The bank’s attractive valuation (P/BV of 0.5x) and consistent, attractive dividend payouts present a compelling long-term value proposition for investors seeking exposure to West Africa’s banking sector.
Regarding its forbearance loans, Zenith has fully exited the regime while remaining profitable.
GTCO | BUY | TP: ₦115.43 | 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 group continued to maintain strong capital positions with Capital Adequacy Ratio (CAR) of 36.5% as of 9M 2025. The bank reports healthy asset quality with 9M 2025 annualised cost of risk (COR) of 3.0%, indicating prudent risk management practices.
Balance sheet has been substantially derisked. GTCO maintains one of the lowest costto-income ratios in the industry with CIR ex-provisions at 28.1% in 9M 2025 reflecting its disciplined approach to cost management and operational excellence.
GTCO rates well with respect to asset quality, corporate governance, capital adequacy, cost management and stable and attractive dividend payment. Recent listing of its shares on the London stock Exchange (LSE) has further improved the stock’s appeal.
DANGCEM | BUY | TP: ₦681.71 | Rated – Dangote Cement posted a strong 9M 2025 performance, with Pre-tax Profit surging by 156.2% y/y to ₦1.04 trillion, driven by robust Revenue growth in both Nigerian and Pan-African markets, cost efficiencies, and a relatively stable foreign exchange environment.
Looking ahead, increased government infrastructure spending and private sector investments are expected to support continued growth. Trading at an EV/EBITDA of 5.76x vs. the EMEA peer average of 7.66x, the stock offers potential valuation upside.
ARADEL | Not Rated – Aradel presents a compelling investment opportunity, supported by resilient Revenue growth of 42.70% y/y to ₦538.81 billion in 9M 2025, driven by higher crude output, increased refined product volumes, and expanding gas sales.
The company is actively scaling drilling activity and boosting refinery capacity, strengthening prospects for sustained volume growth. Although operating costs rose significantly, strong associate contributions from ND Western and RAEC helped cushion pressures, lifting PBT by 57.05% y/y to ₦300.68 billion in 9M 2025.
Furthermore, supported by solid earnings momentum and the prospect of an attractive full-year dividend payout, we anticipate positive investor sentiment around the stock in the near term.
WAPCO | BUY | TP: ₦199.14 | Rated – Wapco is well positioned for sustained growth, driven by increasing cement demand and effective cost management initiatives. The company is on track to deliver a strong full-year performance, with profit growth expected to remain robust.
In 9M 2025, Wapco’s Pre-tax Profit soared by 232.1% y/y to ₦313.29 billion in 9M 2025, highlighting its strong earnings momentum. A consistent history of dividend payments continues to bolster investor confidence.
NAHCO | Not Rated – NAHCO is well positioned for sustained growth into FY 2025, supported by the continued recovery in air travel, increased cargo volumes, and enhanced operational efficiency.
The company is on track to deliver a strong full-year performance, driven by the expansion of its service offerings and strategic partnerships across key airports.
In 9M 2025, NAHCO recorded impressive double-digit Revenue growth of 40.69% year-on-year to ₦47.76 billion, while Pre-tax Profit rose by 45.92% to ₦17.94 billion, reflecting solid top-line performance and effective cost management.
NESTLE | BUY | TP: ₦2,427.79 | Rated – Nestle Nigeria Plc continues to sustain its impressive performance from Q4 2024, driven by growing Revenue and good cost management.
It recorded Revenue growth of 33.0% year-on-year to ₦884.54 billion and Pre-tax Profit of ₦127.96 billion (+150% y/y) in 9M 2025, putting it in an improved position to possibly resume dividend payment by FY 2025.
Valuation remains attractive, with an EV/EBITDA of 7.23x—below the MEA median of 11.13x.
UACN | BUY | TP: ₦103.44 | Rated –UAC of Nigeria Plc is a diversified business with activities in Animal Feeds and Other Edibles, Paints, Packaged Food and Beverages, Quick Service Restaurants, Logistics and Real Estate.
The Group, through its subsidiaries, currently ranks as number 1 in the baked snack category (packaged food and beverages), number 1 in the premium decorative category (paints), and number 1 in the fish feed category (edibles & feed).
UACN concluded its acquisition of CHI Limited—the owners of the Chivita and Hollandia brands—from the Coca-Cola Company on 03 Oct 2025, a strategic move which could further solidify the UACN brand as a leading FMCG in the country while still contributing significantly to its financial performance over the mid- to long-term period.
9M 2025 Revenue for UACN was up 20% y/y to ₦159.58 billion, but Pre-tax Profit of ₦10.40 billion was down 50.1% y/y due to the absence of FX gains recorded in the prior year and one-off acquisition-related expenses for the CHI transaction.
Ex FX gains and one-off acquisition costs, 9M 2025 underlying PBT of ₦12.2bn was 15% higher than underlying 9M 2024 PBT of ₦10.6bn. UACN presently trades at an EV/EBITDA of 6.52x—below the MEA median of 9.70x.
AIRTELAFR | BUY | TP: ₦3,230.33 | Rated – Airtel Africa is projected to report strong Revenue and Profit growth for FY 2025, driven by tariff hikes across key markets. The company’s cost reduction initiatives are beginning to yield positive results, while its strategy to localize debt within operating countries is also showing early benefits by reducing exposure to foreign exchange volatility.
These strategic moves are anticipated to drive increased investor interest and market activity around the stock. In its H1 2026 earnings release, Airtel Africa’s Revenue jumped by 25.8% year-on-year to US$2.98 billion while Pre-tax Profit surged by 268.5% y/y to US$656 million, highlighting its strong earnings momentum.
MTNN | BUY | TP: ₦555.33 | Rated – MTN’s recent tariff increases are expected to drive top-line growth and support profit margins. The company’s cost management initiatives are beginning to yield positive results, while the renegotiation of tower contracts has helped mitigate foreign exchange losses.
These improvements have supported a recovery in both profitability and shareholders’ funds. We believe that the combination of a stronger financial position and the resumption of dividend payments will continue to enhance investor sentiment and drive positive interest in the stock in the near term.
In 9M 2025, MTN recorded Revenue growth of 57.4% y/y to ₦3.73 trillion, while Pre-tax Profit rose to ₦1.13 trillion from a Pre-tax Loss position of ₦713.63 billion in 9M 2024. This reflects its solid top-line performance and effective cost management. Price – as at 28-Nov (₦) 52-Wk High (₦) 52-Wk Low (₦) YTD Return P/E Ratio P/Bv Ratio
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