CardinalStone Raises GTCO Target Price to N159.65
Equity analysts at CardinalStone Securities Limited have raised GTCO’s 12-month target price to N159.65 as the financial services group returns to its pre-2023 dividend payout ratio.
GTCO’s target price was raised to N136.91, reflecting analysts’ positive expectations for 2026 earnings performance, driven by an increased capital position expected to boost investment in interest-earning assets.
In its post 2025 earnings report, CardinalStone Securities Limited told investors that it expects Guaranty Trust Holding Company Plc to extend its positive core earnings momentum into the 2026 financial year.
“.. we see legroom for sturdy growth in Profit Before Tax (PBT) and Profit After Tax (PAT) to N1.5 trillion and N1.1 trillion, respectively, compared to N1.2 trillion and N865.7 billion, apiece, in FY’25”.
Equity analysts’ projections translate to an Earnings Per Share (EPS) of N29.83, representing 17.3% year-on-year growth despite a 36.55% increase in total outstanding shares to 36,550,229,514.
CardinalStone Securities Limited said GTCO’s funding profile remains anchored on a robust deposit base, complemented by a high Current Account, Savings Account (CASA) mix, which has averaged 86.3% over the last five years.
The CASA ratio, however, fell to 82.6% in FY’25 from 87.4% in FY’24 following a 73.1% jump in term deposits to N2.2 trillion, which management attributed to placements from asset management AUM flows, analysts said.
“We anticipate a strong, albeit cautious, deposit growth of 24.8% to N15.7 trillion and foresee an upward reversal in the CASA ratio in FY’26.
“This outlook aligns with management’s aggressive PoS strategy and expanded branch network across Nigeria, Ghana, the Ivory Coast, and East Africa.
“GTCO’s PoS strategy revolves around a zero-fee initiative designed to support SMEs and boost digital transaction volumes, which serves as a major driver for retail deposit growth”, analysts said.
The report stated that revisions to key assumptions across the forecast horizon cascaded to an average ROE of 30.4%, up from 28.1% previously. Analysts see 22.8% upside potential in GTCO at N130 reference.
