Zenith Bank Rises as Investment Firms Upgrade Target Price
Zenith Bank Plc recorded positive price movement that listed its market value at N1.981 trillion in the equities market. The bank’s share price rose to N48.25, up by about N35 billion as investor sentiment improved.
Details from the Nigerian Exchange showed that Zenith Bank was priced higher as 17.941 million shares valued at N862.207 million exchanged hands in the local bourse.
At the current market price, Zenith Bank is trading at a 7.2% discount to its 52-week high in the Nigerian stock market, with analysts’ estimates showing about 43% upside potential.
Equities analysts at Apel Securities Limited have set the fair value of Zenith Bank’s share price at N69.78, which translates to an upside potential of 42.69% at a reference price of N48.90 in the equities market.
Zenith Bank shareholders have seen a 7.47% year-to-date return on their investments. Analysts projected that the bank’s earnings per share will reach N98.11 in 2025.
In Q1, the bank recorded a 20.7% year-on-year growth in profit after tax as the strong core earnings growth offset the decline in non-core income.
Analysts anticipate lower FX-related trading gains in 2025 due to the relative stability of the naira. However, net fees and commissions’ income is expected to cushion the decline in non-funded income.
Zenith Bank’s dividend per share for 2025 was revised to N8.00 from N7.00, hinged on expectations of strong profitability. Cordros Securities Limited set the target price for the bank higher by 1.5% to N75.29/s and maintained a buy rating.
“We project a 17.5% year-on-year increase in gross earnings for 2025, supported by a 34.8% y/y rise in core income. This should be driven primarily by improved credit creation and a larger investment securities base”, Cordros Securities Limited said in its report.
Analysts said they expect the increase in interest income to offset the anticipated decline in non-core income. Precisely, analysts said they expect the sustained growth in the bank’s digital banking transactions—particularly its agency banking and POS business—to drive the net fees and commission income line higher.
The investment firm estimated a 25.3% year-on-year increase in profitability for Zenith Bank—net income estimated to settle at N1.29 trillion. This indicates an earnings per share of N31.52, which reflects the dilutive impact of the additional 9.67 billion shares recently issued, according to Cordros Securities Limited. “Our year-end target price is N75.29”, analysts stated. #Zenith Bank Rises as Investment Firms Upgrade Target Price#
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