Afrinvest Guides Investors on Banks Shares to Sell, Hold, Accumulate
Afrinvest Limited is probably leading the bearish war against banking stocks, details from its weekly stock recommendation suggests. Out of 12 banks under its coverage, Afrinvest advised investors to accumulate Fidelity Bank and Stanbic IBTC only.
Other banks did not make it to the buy buckets, including all the tier-1 lenders. Stocks trader at the investment firm advised investors to reduce their interest in Access Plc at a unit price of N23. Access is yet to publish its earnings results for 2023.
The investment firm keeps ETI on hold rating, indicating that investors should maintain a neutral position ahead of the Pan African Bank earnings release. Maybe, Ecobank group earnings would surprise the market, thus requiring fresh re-rating.
But for FCMB, analysts are strongly bearish. Major rating agencies have expressed caution about FCMB group capital positions with a rating watch negative from Fitch, and GCR Ratings among others.
At N37 versus 12 months target price of N28.70, Afrinvest advised investors to sell FBN Holdings shares which some analysts at Broadstreet feel the same about. When a stock has hit overbought, it is expected to slide if there is no information to prove otherwise. FBNH is trending, competing among bellwethers in the banking index.
On GTCO, the investment banking firm would rather sell at a unit price of N48.45 on Friday, when it exceeded Afrinvest 12-month target price of N38.90 estimated currently. This suggests that GTCO is currently overpriced based on the investment firm’s estimate and selling is a better option.
Sterling Bank’s market price has also exceeded the firm’s 12-month target price. On Friday, Sterling was priced at N5 per share, as against N4.06 target price set by Afrinvest, suggesting that the bank’s share has hit overbought and should be offloaded. By Afrinvest expectation, Sterling Bank has negative upside potential.
UBA is also on sell recommendation due to about 15% estimated negative upside. The Pan African lender share price closed at N24.30 last week versus a target price of N20.75 per share.
It has placed Unity Bank Plc under perpetual review. It also guided investors to sell interest in Wema Bank due to analysts’ expectations that the stock would break. Wema traded at N7.80 on Friday’s close, versus the target price of N6.09 over 12 months.
The investment firm is neutral on Zenith Bank Plc and Ecobank Plc due to weak upside potential. Zenith Bank settled at N39.70 on Friday, versus Afrinvest 12-month target price of N41.70. #Afrinvest Guides Investors on Banks Shares to Sell, Hold, Accumulate
Oil Retreats after Climbing 4-Month High, Iraq Trims Exports
