First Holdco sees early rally as value investors buy the dip

First Holdco Plc flipped the script in early trading on Tuesday as its share price rallied to N45.15, gaining N4.10, or 9.99 percent. This feat, in line with BusinessDay’s expectation, happened as the market mavericks swooped on the stock of the oldest lender post-earnings nosedive. The big buy-back, which ignited a rally on the Nigerian bourse ahead of noon, came as stock investors bet on the company’s ‘clean slate’ post-impairment.

While the casual observer saw a 92 percent profit crash and a record-breaking share price nosedive, the “smart money” heard a starting gun.

Following First Holdco’s bold decision to take a massive N748.13 billion one-time impairment charge to clean up its balance sheet, the stock’s initial 9 percent plunge has quickly transformed into a high-stakes entry point.

Market mavericks are now betting big that this “surgical strike” by its billionaire chairman, Femi Otedola, has effectively de-risked the institution for 2026.

Read also: First Holdco’s biggest single day plunge in 3 months opens opportunity for investors

By choosing transparency over temporary optics, First Holdco has cleared the decks of legacy bad loans, turning what looked like an earnings disaster into a rare, discounted window for investors looking to ride the next era of growth.

“Following the significant front-loading of impairment charges in Q4:2025 and the Group’s exit from regulatory forbearance, we expect credit costs to normalise gradually, translating into improved earnings quality and real value creation from a cleaner balance sheet,” according to Meristsm Research analysts in their recent note.

Their target price for the First Holdco share price is N73.22, representing an upside potential of 62.70 percent from N45, the price the stock closed at last week.

“Given the weak Q4 2025 results, investors will watch the Q1 2026 results keenly for signs that the institution is now on a sustainable path of recovery after the significant balance sheet-correcting decisions that were taken in 2025,” Coronation Research analysts said in their February 2 note on First HoldCo’s results.

Iheanyi Nwachukwu, is a creative content writer with almost two decades journalism experience writing on banking, finance, capital markets, and tax. The multiple awards winning journalist is Assistant Editor, BusinessDay. Iheanyi holds BSc Degree in Economics from Imo State University; Master of Science (MSc) Degree in Management from University of Lagos.

Iheanyi has attended several work-related trainings including (i) Advanced Writing and Reporting Skills (Pan African University, Lagos); (ii) News Agency Journalism (Indian Institute of Mass Communication {IIMC}, New Delhi, India); and (iii) Capital Markets Development and Regulations (International Law Institute {ILI} of Georgetown University, Washington DC, USA).

Other trainings Iheanyi attended include: Economic/Political Risk Analysis (By Thomson Reuters Foundation); International Financial Journalism (IFJ) (By PMA Media Training, UK); Effective Business Writing Skills (By Phillips Consulting); Reporting on Corporate Governance (By International Finance Corporation (IFC) & Thomson Reuters Foundation UK); etc. In addition, he has participated in high-level economy & markets events in Dubai, South Africa, Morocco, and other African countries like Zambia, Ghana and Gambia.

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