First HoldCo Plc staged a sharp rebound in early trading on Tuesday as its share price climbed to N44.40, gaining N3.35 or 8.16 percent, following renewed investor interest after its post-earnings slump.
The rally, which occurred ahead of noon on the Nigerian Exchange, came as market insiders moved in on the stock of the country’s oldest lender, betting on what analysts describe as a “clean slate” following a massive balance sheet reset.
While the broader market initially reacted to First HoldCo’s 92 percent profit decline and the steep selloff that followed its earnings release, seasoned investors saw opportunity rather than weakness.
The turnaround sentiment follows the company’s decision to take a one-time impairment charge of N748.13 billion, a move aimed at clearing legacy bad loans and strengthening its financial position. The announcement initially triggered a near 9 percent drop in the stock, but that decline has since been reinterpreted as an attractive entry point.
Market watchers say the decisive action, championed by billionaire chairman Femi Otedola, has significantly de-risked the institution ahead of 2026, shifting focus from short-term earnings pain to long-term value creation.
By prioritising transparency over cosmetic profits, First HoldCo is believed to have positioned itself for stronger earnings quality and sustainable growth.
In a recent note, Meristem Research analysts said the front-loading of impairment charges and the group’s exit from regulatory forbearance should allow credit costs to normalise gradually.
They placed a target price of N73.22 on the stock, implying an upside potential of 62.7 percent from around N45, where the shares closed last week.
Similarly, Coronation Research analysts, in a February 2 note, said investors will be watching the company’s Q1 2026 results closely for signs of recovery and stability following the balance sheet corrective actions taken in 2025.
For now, the rally suggests that confidence is slowly returning, with investors positioning early for what they believe could mark the beginning of First HoldCo’s next growth phase.
