WED, MAY. 17 2023-theGBJournal |ACCESSCORP and Zenith Bank could be a solid choice for investors given their latest upgrade to ”BUY” by Cordros Research.
Both bank’s rating main determinants are positive earnings forecast and optimism that elevated fixed income yields will drive funded income in 2023 for the banks.
For ACCESSCORP, Cordros increased their 12M target price (TP) by 2.6% to N13.80/s (previously: N13.45/s) and maintain our “BUY” rating.
”The upward adjustment in our TP reflects our expectations of an improved financial performance, supported by increases in interest rates and continuous increases in the group’s interest-earning assets,” Cordros said.
”Additionally, we expect the successful transition into a HoldCo structure to positively impact its earnings growth. However, we expect the lingering weak macroeconomic story to weigh on the group’s earnings in 2023E.”
For ZENITHBANK, Cordros increased its TP marginally by 1.0% to N34.69/s and maintained its “BUY” rating on the stock.
The rise in target price is primarily driven by optimisim that the elevated fixed income yields will drive funded income in 2023E.
”In addition, we believe risk asset creation and a sturdy non-interest income growth will support stronger income growth. However, we note that the challenging business environment still poses potential risks to the bank’s financial performance,” Cordros noted.
Similarly, Cordros increased the TP for GTCO slightly by 0.1% to N31.73/s and our “BUY” rating on the stock.
It said the increment in 2023E TP is based on its outlook that the Holdco’s earnings growth will maintain its positive trajectory buoyed by the elevated yield environment and continuous cost management.
”In our estimates, we factored in elevated inflationary pressures on the Holdco’s performance during the period,” Cordros noted.
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ACCESSCORP and Zenith Bank could be a solid choice for investors given their latest upgrade to ”BUY” by Cordros Research…
