GTCO Keeps Momentum Tight in Equities Market, Crossed N1.8trn
Guaranty Trust Holding Company Plc (GTCO) Plc has crossed N1.8 trillion in the equities market as demand for the Tier-1 banking name spiked ahead of earnings release.
Data from the Nigerian Exchange revealed GTCO share price hit a new 52-week high of N61.25 on Friday. The Banking Group share price has been on the rise on a steady basis, breaching resistance all through last week in the local bourse.
Its 29.431 billion shares outstanding’s market value climbed above N1.8 trillion as strong share volumes exchange hands in the market, mostly in favour of buy-side actors. Most analysts sampled are of the view that GTCO earnings performance for 2024 will not disappoint amidst a high interest rate environment.
The group cost leadership has consistently boosted its margin, with the lowest costs of funds in the banking space. The financial performance of GTOC in 9M-2024 was impressive, with HoldCo’s earnings crossing N1 trillion mark, analysts said.
The group earnings performance was driven by the strong growth across core and non-core income lines, reflective of the high interest rate environment and foreign exchange gains, Cordros Capital Limited said in review.
Subsequently, analysts at the firm increase its target price by 23.7% to N72.85/s from N58.88/s and maintain a “BUY” rating. Cordros Capital Limited said in its review note that the increase in our target price is underpinned by expectation that the Holdco will maintain earnings expansion in 2024.
This is expected to be bolstered with continued support from the elevated interest rate in the environment, local currency depreciation-induced gains, and strong cost management.
“We cite regulatory pressures and weak macro stories that pose downside risks to our estimates,” the firm stated. Analysts at Cordros Capital Limited projected a final DPS of N4.00 in 2024. #GTCO Keeps Momentum Tight in Equities Market, Crossed N1.8trn IAS 29: Nigeria Not Hyperinflation Economy – Financial Reporting Council
