December 18, (THEWILL) — Several large-cap Nigerian stocks, led by MTN Nigeria Communications (MTNN) and Dangote Cement, have been assigned “strong buy” recommendations for 2026 by market analysts, driven by expectations of earnings recovery, improved pricing power, and a more supportive macroeconomic environment.
According to analysts, the companies are well positioned to benefit from inflation pass through, cost optimisation, and resilient demand, which should translate into stronger margins and cash flows over the medium term.
MTNN is viewed as a major beneficiary of recent and anticipated tariff adjustments in the telecoms sector, alongside rising data consumption and disciplined capital expenditure.
It is expected that these factors to support revenue growth and margin expansion, while easing foreign exchange pressures could help stabilise finance costs and improve profitability after a challenging period.
Dangote Cement, Africa’s largest cement producer, continues to attract positive sentiment on the back of its dominant market position, pricing discipline, and pan-African diversification.
It is highlighted that sustained infrastructure demand, coupled with the company’s ability to pass higher costs to consumers, should underpin earnings growth.
Improvements in energy efficiency and logistics are also expected to support margins.
Beyond MTNN and Dangote Cement, other consumer goods and industrial names have been flagged for upside, particularly companies with strong brand equity, local sourcing advantages, and limited exposure to foreign currency liabilities. These firms are seen as better equipped to navigate inflationary pressures while protecting profitability.
Analysts also point to a potential re-rating of fundamentally strong stocks as investor confidence gradually returns to the equities market, supported by expectations of macroeconomic stabilisation, easing FX volatility, and improved corporate earnings visibility.
Overall, the “strong buy” calls reflect a view that select Nigerian equities are entering a recovery phase, with 2026 earnings likely to surprise on the upside for companies that combine pricing power, scale, and operational efficiency.
Ogochukwu Onwaeze
