Here is Zenith’s Stock Picks and rationale:

ASHAKA CEMENT  
BUY at 27.8 
Rationale: Supply gap in the cement market, rising cement prices and capacity addition would boost long term earnings despite energy constraints

LAFARGE WAPCO 
BUY at 40.65 BUY 
Rationale: Rising cement prices, increased demand for cement and capacity additions would boost margins

NIGERIAN BOTTLING COMPANY 
BUY at 46.1
Rationale: Capacity expansions and upgrade of plants will help boost sales and efficiency ratios

SEVEN-UP BOTTLING PLC  
BUY at 46.32
Rationale: Capacity expansions and upgrade of plants will help boost sales and efficiency ratios but, rising raw material cost will drag down margins

DANGOTE SUGAR  
BUY at 29.25
Rationale: Capacity additions and increased demand for bio-fuels will widen demand-supply gap

FLOUR MILLS
BUY at 113.04
Rationale: Capacity additions and growth in flour consumption driving price

NIGERIAN BREWERIES PLC  
BUY at 54.21
Rationale: Substantial scope for growth in the beer market, increased demand from growing middle class and generous dividend payout

GUINNESS NIGERIA PLC.
BUY at 103.76
Rationale: Substantial scope for growth in the beer market, increased demand from growing middle class and generous dividend payout

UAC NIGERIA PLC  
BUY at 59.3
Rationale: Continuing disposal of non-performing assets will free up cash and capital across the business

NESTLE NIGERIA PLC
SELL at 136.78
Rationale: Increasing economic conditions will spur demand but, increase in price of raw materials a major downside risk

PZ CUSSONS  
BUY at 31.13
Rationale: Strong competition from Procter & Gamble, Unilever and imports will keep margins low

BAGCO  
BUY at 5.1
Rationale: Biggest supplier of woven sack in Nigeria. Capacity to grow earnings is enhanced by the growing demand for cement in Nigeria.

AIICO INSURANCE
BUY at 3.15
Rationale: Economic growth, reforms in the insurance sector and improved capitalisation key to achieving target price

SOVEREIGN TRUST INSURANCE
BUY at 2.29
Rationale: Economic growth, reforms in the insurance sector a catalyst but ,margins compared to peers a beer point

CRUSADER INSURANCE
HOLD at 5.61
Rationale: Economic growth, reforms in the insurance sector a catalyst but ,margins compared to peers a bear point

MUTUAL BENEFIT ASSURANCE
BUY at 2.88
Rationale: Economic growth, reforms in the insurance sector and improved capitalisation key to achieving target price

CONTINENTAL REINSURANCE PLC
BUY at 1.94
Rationale: Economic growth, reforms in the insurance sector a catalyst but ,margins compared to peers a bear point