Analysts Guide Investors to Hold, Reduce Zenith Bank Shares
Equities analysts at Afrinvest Securities Limited, in their stock recommendation for the new week, advised investors trading highs and lows on the Nigerian Exchange (NGX) to reduce their interest in Zenith Bank Plc.
The investment firm asked its clients to reduce interest on Zenith Bank’s share as analysts’ estimates showed a 3.2% negative return. The reduced rating was anchored on the expectation that the total return of the stock ranges from nil to negative.
Zenith Bank share price settled at N44.30 on Friday in the equities market.
Afrinvest Limited is of the view that aggressive exit or entry may not be appropriate, as the stock might fluctuate into a 10% decline over a 12-month horizon. Thus, the slim upside potential does not adequately compensate for the inherent risk, it said in its explanatory note.
A more liberal analyst at Atlass Portfolios Limited advised investors to remain neutral on Zenith Bank Plc instead. Atlass Portfolios equities analysts see less than 10% upside in the financial services group.
Zenith Bank Plc has delivered a 15.97% year-to-date return to investors, as the return on equity reached 29.1%, according to analysts’ stock recommendations. The bank stock has remained less volatile despite a series of alleged frauds against the group.
In its unaudited financial statement, Zenith Bank told the regulators there was litigation settlement in the period 30 September 2024 amounting to N31.05 million. Naira Plunges on Suboptimal FX Intervention
