Presco hits record share price mark, analysts see continued rally

The list of N1 trillion and over stocks in the Nigerian Exchange (NGX) continues to grow, with the latest entrant being Nigeria’s biggest palm oil maker Presco Plc.

On June 17, Presco’s stock climbed by 1.52 percent to close at N1,000, pushing its market capitalization just over the N1 trillion mark. Meristem Research maintains a bullish stance on the stock, setting a target price of N1,062.52, suggesting further upside potential.

Kayode Eseyin, a research analyst at CardinalStone Securities, noted that the company still holds significant growth prospects, particularly ahead of its half-year earnings report. “If they report strong earnings growth—which I think they would—we can see some price action,” he said.

Eseyin pointed to Presco’s acquisition of Ghana Oil Palm Development Company (GOPDC) as a major catalyst, stating that the company’s earnings have benefited considerably from the inorganic expansion strategy.

Presco becomes the seventh company to cross the N1 trillion mark in 2025, joining the ranks of Access Holdings, Nigerian Breweries, International Breweries, Fidelity Bank, Stanbic IBTC, and Nestle Plc.

Read also: Presco hits ₦1000/share mark, analysts suggest it may go higher

The stock has had an impressive run in 2025, rallying by 111 percent year-to-date after beginning the year at N475 per share. In 2024, Presco posted a net income of N77.8 billion, driven by revenue that more than doubled to N207.5 billion. In just the first quarter of 2025, it has already delivered a net income of N47.6 billion—more than half of last year’s total.

With an earnings per share (EPS) of N47.58 and a current price of N1,000, the stock trades at a historic price-to-earnings (P/E) ratio of 21.0x. This elevated multiple reflects rising investor confidence in the company’s performance and future potential.

Presco has also declared a final dividend of N42 for FY2024, implying a dividend yield of around 4.2 percent at the current share price.

Meanwhile, Okomu Oil—the other major listed oil palm producer—has also posted a strong showing this year, with a 46.4 percent year-to-date gain. With a net income of N21.7 billion and EPS of N22.79, Okomu trades at a P/E ratio of 28.5x, higher than Presco’s despite the latter’s record-setting valuation.

When viewed through the lens of core fundamentals, Presco’s return on average equity of 97.6 percent underscores its robust operational efficiency and effective capital deployment. These are attributes that have defined the company’s performance in recent years.