Ecobank Transnational Incorporation (ETI) 12 month target price has increased to ₦34.40 per shares.
This was analyzed following the Pan African Lender earnings release.
The performance of the bank had an impact on its net-interest margin ratio, the key operating ratios which had a great impact on its net interest income and the trading income.
“The target price of Eco bank reflects an exit price to book ratio of 0.6x, which represent an increase from 0.5x. The bank is projected to post a return on equity of 23.8% in 2024 as against 17.0% average over the last 5 years”, CardinalStone said in its company update.
There is a 62% upside in the financial services group with its revised target price to reference price of ₦23.70.
In 2023, ETI’s earnings defied notable currency weaknesses in Zimbabwe (-89.0%), Nigeria (-50.0%), and Ghana (-29.0%), expanding by 11.0% to $406.9 million, CardinalStone stated in its update.
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