As 2026 gathers pace, Nigeria’s equity market is shifting away from the era of ‘cheap money’ into a phase that demands more deliberate and selective investing.
Market strategists say investors are no longer simply chasing the biggest names on the exchange. Instead, portfolios are increasingly tilted towards high-growth opportunities, especially small-cap stocks that could outperform the broader market.
Custom Street analysts’ 2026 ‘must-own’ lists, which collectively feature 40 stocks, reflect a focus on high-conviction picks considered critical for beating a bull market that is gradually maturing.
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While short-term price movements may be more volatile in Nigeria’s stock market, improving fundamentals are expected to support the selected companies’ performance over the investment horizon, according to Lagos-based Meristem research analysts, which favours stocks like AIICO, saying their target price for AIICO is N5.84.
Other stocks in the analysts’ portfolio and their target prices are: BUA Cement (N256.63), Fidson Healthcare (N100), and First Holdco (N 73.22).
Also, in their portfolio picks, the analysts favour stocks such as Mutual Benefits (N 7.85), MTNN (N740.71), NASCON (N 144.79), and NEM Insurance (N 46.13), noting their belief that aggressive growth investing comes with higher risk.
“Against the backdrop of a favourable macroeconomic environment, the stocks in our aggressive growth portfolio are selected based on their potential for high returns in 2026, taking into account their fundamentals and overall market sentiment,” Meristem Research analysts noted.
The analysts prioritise small-cap stocks that have shown strong growth in recent years, while also considering those with long-term growth potential.
Meristem analysts are also convinced that stocks like UACN with target price of N113.75, UBA (N71.8), Unilever (N 95.33), Vitafoam (N136.80), Lafarge Africa (N240.69), Wema Bank (N 27.87) and Zenith Bank (N89.18) are good picks for investors seeking strong capital appreciation.
CardianalStone projections
For CardinalStone analysts, 2026 is shaping up as a year of both optimism and uncertainty. They believe the expected reclassification of Nigeria to Frontier Market status by FTSE Russell, with a formal review due in March, could reignite foreign investor interest in Nigerian equities.
Their recommended stocks and 12-month target prices include Access Holdings (N42.29), Airtel Africa (N3,906.75), Aradel (N812.23), Dangote Cement (N778.2), ETI (N50.08), FCMB (N14.64), Fidelity Bank (N24.99), GTCO (N128.63), MTNN (N669.42), Presco (N1,801.34), and Seplat (N9,121.64).
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“This environment positions Nigeria favourably relative to several global and emerging markets. In view of these shifts, an appropriate asset allocation strategy needs to harness Nigeria’s potential tailwinds while offering a strong leaning towards AI-led market momentum and hedging global volatilities through exposure to quality defensive equities, fixed income sub-portfolio, and suitable alternative assets,” they noted.
Other stocks and their 12-month target prices, as recommended for investors by CardinalStone analysts are: Stanbic IBTC (N115.27), Transcorp (N67.38), UBA (N61.91), Unilever (N 87.58), Lafarge Africa (N202.87), and Zenith Bank (N 97.86).
United Capital projection
United Capital Research analysts have asked investors to buy Sterling Financial Holdings, saying that it has an upside potential, considering the target price of N10.
Other stocks in United Capital analysts’ basket and their target prices showing upside potential are: Access Holdings Plc (N32), Aradel Holdings Plc (N1,000), United Bank for Africa Plc (N60), International Breweries (N20), FCMB Group Plc (N15), Transnational Corporation (N60), Julius Berger Nigeria Plc (N200), and Nestle Nigeria Plc (N2,550).
They have also asked investors to buy Zenith Bank Plc, saying the target price for the stock is N85. Other recommended stocks are: C & I Leasing Plc (N10), AIICO Insurance Plc (N5), Dangote Cement Plc (N778), BUA Cement Plc (N220), AXA Mansard Insurance (N18), Transcorp Power Plc (N365), MTN Nigeria (N650), and Mutual Benefits Assurance (N4.70).
Lafarge Africa Plc is also a good buy, the analysts said, as it could reach N170. Other good stocks, according to the United Capital, are: Wema Bank Plc (N25), P Z Cussons Nigeria Plc (N57), and Seplat Energy (N6,500).
Futureview projection
Futureview Research analysts, on their part, advised investors to buy GTCO with a target price of N119.88. Other banking stocks on their buy list include: Fidelity Bank (N23.44), Access Holdings (N34.55), UBA (N51.37), Zenith Bank (N88.33), and Sterling Financial Holdings (N8.70).
Futureview also favours Nigerian Breweries (N88.94), Unilever (N104.10), Honeywell Flour Mills (N31.74), Dangote Cement (N712.33), Lafarge Africa (N196.93), Beta Glass (N551.62), MTNN (N678.13), Airtel Africa (N2,596), NEM Insurance (N36.41), AXA Mansard (N17.35), and Transcorp (N61.10).
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Vetiva projection
Meanwhile, Vetiva Research noted that the market is currently in a consolidation phase, reflected in Monday’s flat close and weaker trading volumes.
The firm expects this trend to continue as investors selectively hunt for value in oversold stocks while remaining cautious about macroeconomic risks.
“Unless a significant catalyst emerges to drive institutional flows, we anticipate another session of mixed trading with a focus on sector-specific rotation,” the analysts said, as the market’s key performance indicators – the NGX-ASI and market capitalisation – closed Monday at 165,517.60 points and N105.962 trillion. The market has risen this year by 6.36 percent.
