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Nigerian Banks overpriced in Stock Market

Stock price drop

Bearish stock financial, bear market chart falling prices down turn from global economic and financial crisis.

Some Nigerian Deposit Money Banks have been overpriced in the stock market.

This has been analyzed by analyst ranging from hold, buy and sell ratings. The investors has been advised to either hold or sell the bank stocks.

Analysts at Meristem Securities estimate showed that these banking names have healthy fundamentals.

The lowest with net interest margin below 18% have at least 12% return on equity and strong upside potential upside.

Access Holdings Plc has about 18% year-to-day loss, followed by FBN Holdings, which has recently become target for profit-taking.

Stanbic IBTC remains worst investment for shareholders, with 25.34% negative year to date return along with negative return from UBA, and Zenith at 14.23% and 7.12% respectively.

Meristem Securities said “in its stock recommendation report that some of these lenders, despite their relatively healthy fundamentals, have performed negatively in the stock market in 2024.”

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