Fidelity Bank: Analysts See 36% Upside on Price Target
In its weekly stock recommendation, equity analysts at Cowry Asset Limited confidently project a 36% upside for Fidelity Bank’s share price on the Nigerian Exchange.
Fidelity Bank’s price target was set at N27.20 by equity analysts, which is significantly above its 52-week high of N24.25, based on its trading record on the local bourse.
This suggests a blend of optimism and anticipated earnings performance. Last week, the Nigerian Exchange Banking Index unexpectedly dropped by 5.48% amidst the Q1 earnings release.
Investors trimmed their holdings of financial stocks, with sharp profit taking in Tier-1 banking stocks -First Holdco, Access Holdings, among others. Tier-1 banks account for about 80% of the banking index composition.
Analysts at Cowry Asset Limited are unequivocal in their recommendation, asserting that Fidelity Bank’s share price has the potential to soar to N27.20—an impressive 36% increase from the N20 per share closing price noted in April.
Last week, Fidelity Bank experienced remarkable transaction volume on the Nigerian Exchange, clearly demonstrating strong investor interest, high liquidity, and intense market activity with a substantial number of shares changing hands.
With a market capitalisation of N1.004 trillion, Fidelity Bank’s stock price declined slightly, reflecting the recent selloff in the banking index.
Trading data from the Nigerian Exchange platform revealed that Fidelity Bank’s share price fell by N2.30 over the last four trading sessions, closing at N20 from N22.30.
Reflecting their estimates, Cowry Asset analysts believe Fidelity Bank is undervalued, as the lender was listed among the top stock recommendations for the week with a buy rating.
Analysts set a short-term profit-taking point at N23 per share, guiding investors to stop potential loss if the stock nosedives to N17 from the current market price.
Stockbrokers told MarketForces Africa that the elevated trading volume of Fidelity Bank shares signifies unwavering investor confidence and indicates that a large number of market participants are actively engaging with this stock.
To some analysts, a higher target price reflects the stock’s attractiveness, anchored on earnings stream expectations, the ability to ward off market threats, and survival amid intense industry rivalry.
