Nigerian banks are dominating late-September equity recommendations as the Nigerian Exchange (NGX) continues to reach record levels, with analysts pointing to earnings prospects and expectations around monetary conditions as key drivers of investor interest.
A review of six brokerage reports showed that UBA, Access Holdings, ETI, FCMB, GTCO and Zenith Bank each received at least four positive ratings. UBA and Access Holdings, for instance, each attracted four positive recommendations, although analysts’ price targets varied significantly.
The banking-sector momentum comes as the NGX All-Share Index rose 2.78 per cent in the week ended September 18 to 249,804.56 points. It then gained another 0.14 per cent on Monday, closing at a record 250,156.80 points, while market capitalisation reached N162.39 trillion.
However, analysts do not share identical views on the outlook for individual banks. Some brokerage forecasts have produced wide differences in target prices, while certain analysts issued sell recommendations on GTCO and Zenith Bank.
Market observers said investors should consider earnings expectations, valuation multiples, asset quality and interest-rate assumptions rather than relying solely on headline price targets.
The latest market performance highlights the continuing influence of banking stocks on Nigeria’s equities market and the strong investor attention being directed toward financial-sector counters.
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