Cordros analysts set 2026 target for Lafarge shares on expansion

Cordros Securities analysts have set a 2026 target price of N240.54 per share for Lafarge Africa Plc, accompanied by a hold recommendation on the stock.

The projection is anchored on a reference price of N213.90 from their latest equity update, a level already surpassed, with the stock closing at N226.50 on March 18, 2026.

This revision reflects an increase from the earlier estimate of N218.33 per share, as analysts cite profit expansion and improved valuation metrics supporting the company’s outlook.

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Previously, in May 2025, Nairametrics reported a target price of N104.71 for Lafarge set by Cordros, which the stock outperformed, ending the year at N134.5 per share.

What analysts are currently saying

Analysts expect Lafarge Africa’s 2026 revenue to rise 26.1%, driven by a 10.8% increase in sales volume to 6.98 million tonnes and a 13.8% rise in realized price to N192,500 per tonne.

• They highlighted that capacity expansions at the Sagamu and Ashaka plants have begun, with completion expected within 12 months, fully funded from internally generated cash, according to management.

• The company’s upgraded facilities will feature energy-efficient dry process systems, including preheater kilns, vertical raw mills, and roller presses, strengthening local production capacity and improving nationwide product availability.

Cordros also noted that rising energy and raw material costs could push the cost of sales up by 24.9%, partially offsetting revenue growth.

Operating expenses are also expected to increase 24.3%, driven mainly by higher distribution and logistics costs anticipated over the year.

• Despite these pressures, EBITDA margins are projected to strengthen to 40.1%, up 10 basis points year-on-year, reflecting improved operational efficiency and strong income generation.

Earnings per share are forecast to rise 31.5% year-on-year to N22.30, supported by higher operational performance and the company’s expanded production capacity.

**Get up to speed **

According to a February notice to the Nigerian Exchange Limited from Lafarge, signed by company secretary Adewunmi Alode, the Ashaka and Sagamu plant expansions will increase production to 2 and 3.5 million tonnes annually.

The increased capacity is expected to improve product availability and enhance Lafarge Africa’s ability to serve customers efficiently across key domestic markets.

Group Managing Director/CEO Lolu Alade-Akinyemi stated the project’s aim to expand the company’s production capacity and support ongoing infrastructure and construction activities across Nigeria.

Alade-Akinyemi added that the projects are expected to improve operational efficiency, support sustainability initiatives, and contribute to economic activity and employment in host communities and surrounding areas.

**What you should know **

The expansion follows Huaxin Building Materials Group’s acquisition of 83.81% of Lafarge Africa Plc last year.

• In 2025, Lafarge Africa shares returned 92% to investors on the Nigerian Exchange, closing at N134.5 per share, above estimates, supported by strong financial performance.
• The company reported N1.1 trillion in revenue for 2025, up 53% from N696.8 billion in 2024, alongside a 173% rise in Profit After Tax to N273 billion.
• So far in 2026, shares have climbed 68% year-to-date, with over 335 million units traded.

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