Nigerian Capacity Expansion Will Unlock Potential Despite Cost Risks

AN

AnalystConsensusTarget

AnalystConsensusTarget

Not Invested

Based on Analyst Price Targets

Published

26 Jul 25

Updated

15 Dec 25

Views

70

n/a

n/a

AnalystConsensusTarget's Fair Value

n/a

1Y

87.1%

7D

7.4%

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1Y

87.1%

7D

7.4%

You can edit this narrative until Dec 16 3:05 PM. Then, changes will post as Updates.

Author's Valuation

₦132.7731.1% overvalued

AnalystConsensusTarget Fair Value

Shared on 15 Dec 25

BUACEMENT: Elevated Funding Costs Will Likely Pressure Future Profit Margins

Analysts have modestly raised their price target for BUA Cement, maintaining fair value at ₦132.77 while fine tuning key valuation inputs such as discount rate, revenue growth, profit margin, and future P E assumptions to reflect a slightly more constructive long term earnings outlook. What's in the News Board meeting scheduled for October 27, 2025, to review BUA Cement's unaudited financial statements for the quarter ended September 30, 2025 (2025 Q3 UFS) (Key Developments) Valuation Changes Fair Value: Unchanged at NGN 132.77 per share, indicating no revision to the core valuation anchor.

Shared on 29 Nov 25

BUACEMENT: Rising Discount Rate Will Lead to Weaker Profit Margins Ahead

Analysts have revised their price target for BUA Cement to ₦132.77, citing a significant decrease in profit margin assumptions and a notable increase in projected future price-to-earnings multiples as key factors influencing this update. What's in the News A board meeting is scheduled for October 27, 2025, to consider BUA Cement's unaudited financial statements for Q3 2025 (Key Developments).

Shared on 15 Nov 25

Fair value Increased 5.52%

BUACEMENT: Future Net Profit Margin Growth Will Not Offset Revenue Weakness

Analysts have raised their price target for BUA Cement from ₦125.83 to ₦132.77. They cite expectations of significantly higher profit margins and a lower projected forward P/E ratio, despite slightly reduced revenue growth forecasts.

Shared on 29 Aug 25

Fair value Increased 7.99%

Despite a reduction in consensus revenue growth forecasts, analysts have raised BUA Cement’s price target as the stock now commands a higher forward P/E, resulting in an increased fair value estimate from NGN116.51 to NGN125.82. What's in the News Board meeting scheduled to review unaudited half-year financial statements and discuss other business matters.

Shared on 03 Aug 25

Fair value Increased 26%

Despite a downward revision in revenue growth forecasts, a sharp improvement in BUA Cement's net profit margin has driven analysts to raise the fair value target significantly from NGN92.59 to NGN116.51. What's in the News Board meeting scheduled to review unaudited half-year financial statements and address other business matters.

AnalystConsensusTarget Fair Value

₦132.77

31.1% overvalued

Future estimation in

Growth p.a.

Growth p.a.

%

Decrease

Increase

Current revenue growth rate

16.96%

Basic Materials revenue growth rate

0.18%

Risk Level (Discount Rate)

Our default considers factors like the company's size, volatility, profitablity and country of operation.

%

0

Decrease

Increase

Current discount rate

29.06%

Calculation

₦567.02b

Earnings '28

x

17.07x

PE Ratio '28

=

₦9.68t

Market Cap '28

₦9.68t

Market Cap '28

/

33.86b

No. shares '28

=

₦285.77

Share Price '28

₦285.77 Share Price '28

Discounted to 2025 @ 29.11% p.a.

=

₦132.77

Fair Value '25