Stockbrokers pick Zenith, UBA, GTCO to drive market gains in H2 2026

Leading stockbroking and investment firms have identified banking stocks, among others on the Nigerian Exchange Limited (NGX) as their top investment picks for the second half of 2026, with banking stocks dominating recommendations following the market’s sharp correction in June.

A review of investment reports by Meristem Securities, Blue Marina Research, Cowry Asset Management and Arthur Steven Asset Management showed that Zenith Bank, United Bank for Africa (UBA), Access Holdings, GTCO, Ecobank Transnational Incorporated (ETI), Fidelity Bank, MTN Nigeria, Dangote Cement, AIICO Insurance, NASCON Allied Industries and NEM Insurance are expected to outperform, supported by strong earnings, attractive valuations and healthy dividend prospects.

The recommendations come after June’s equity market sell-off wiped more than N13 trillion from investors’ wealth, leaving many fundamentally strong companies trading below their intrinsic values.

Among all the stocks reviewed, Zenith Bank emerged as the strongest consensus recommendation, earning Buy ratings from all four investment houses—the only company to achieve unanimous support.

Analysts projected an average target price of N159.48, implying a potential capital appreciation of between 40 and 56.2 per cent.

Meristem Securities attributed the optimism to the bank’s attractive valuation, noting that Zenith trades at a price-to-earnings ratio of 4.20 times and a price-to-book ratio of 0.85 times, while delivering a 20.18 per cent return on equity.

Blue Marina Research also forecast a 5.6 per cent dividend yield, bringing the bank’s expected total return close to 48 per cent.

UBA secured Buy ratings from Blue Marina, Arthur Steven and Meristem, with analysts projecting an average target price of N59.92, representing an estimated upside of about 46 per cent.