June 17, 2026/CSL Report
Dangote Cement delivered a strong Revenue performance in Q1 2026, with Revenue rising by 20.4% year-on-year (y/y) to ₦1.2 trillion. The growth was primarily driven by robust performance in the Nigerian market, supported by higher selling prices and volume expansion. Looking ahead, we expect sustained demand from ongoing infrastructure development and real estate activities to continue supporting topline growth. Consequently, we forecast FY 2026 revenue of ₦5.4 trillion, representing a 24.2% y/y increase.
The company’s earnings outlook remains favourable, underpinned by strong operating leverage, disciplined cost management, and continued investments in compressed natural gas (CNG) logistics and alternative fuel systems. These initiatives are expected to enhance operational efficiency and lower production and distribution costs.
Furthermore, reduced foreign exchange exposure, and a more stable exchange rate environment should help moderate finance costs. As a result, we forecast Profit Before Tax (PBT) to increase by 60.0% y/y to ₦2.4 trillion in FY 2026, compared with ₦1.5 trillion in FY 2025.
Following our revised earnings projections and improved outlook for FY 2026, we have increased our Target Price to ₦1,359.79/s from ₦827.47/s previously.
However, given the stock’s strong price appreciation and the relatively modest upside potential of 17.7% from the current market price of ₦1,155.00 per share, we downgrade our recommendation to HOLD from BUY. Our valuation is derived using a blended approach comprising Discounted Cash Flow (DCF) and Relative Valuation methodologies, weighted 60% and 40%, respectively.
To read full report, click on the link below
CSL Dangote Cement Q1 2026 Company Update.pdf
