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Nigerian Breweries (NB) stock price target has been raised to N82.89 per share by Cardinal Stone Partners to reflect expectations of stronger earnings growth in the 2026 financial year.
“We have revised our Target Price (“TP”) slightly upward for Nigerian Breweries Plc (“NB”) to N82.89/share (from N80.62/share), following the release of the company’s 9M’25 earnings and subsequent conversations with management,” the analysts led by Philip Anegbe said in their most recent report.
“Our revision captures our expectation of stronger earnings growth in FY’26, supported by improved volumes, continued cost optimisation, and the expected absence of one-off impairment charges that weighed on Q3’25 performance.”
Nigerian Breweries closed trading at N68.50 a share on Friday 21st November, implying an upside potential of 21%. The Target Price further implies a price to earnings (P/E) multiple of 14.5x, well below NB’s 10-year average of 20.6x.
Moving into Full Year 2026, Cardinal Stone Partners expects Nigerian Breweries to record a modest improvement in margins, supported by revenue projection of N1.9 trillion (+24.9% YoY).
“The higher revenue will be driven by improved volumes, continued cost optimisation, and an extensive distribution network,” they said.
Dividend payment may resume in Full Year 2026
Following a two-year suspension in dividend payments due to adverse macroeconomic conditions, Nigerian Breweries earnings recovery trajectory signals a potential resumption of dividend payouts in Full Year 2026, according to cardinal Stone.
The sharp Naira devaluation and elevated inflation over Full Year 2023 and 2024 had triggered substantial foreign exchange losses, eroding retained earnings.
However, with profitability improving and currency pressures easing, retained earnings are projected to return to positive territory in the Full Year 2026 financial year.
“Even after assuming a 60.0% dividend payout ratio, retained earnings are expected to close the year at N32.2 billion, underscoring NB’s renewed earnings strength and balance sheet resilience,” the analysts said.
Nigerian Breweries has a market capitalization of N2.12 trillion ($1.4 billion), and the stock is up 114% year to date.
