Zenith Bank Gives Investors 53% Return to Shareholders in 8 Months
Zenith Bank Plc optimistic potential has widened as the financial services company’s share price becomes cheaper for investors seeking value ahead of earnings release. At the reference price of N70 last week, Ajose Adeogun headquartered financial service company with 35 years in operation, has delivered some 53% return in investors to shareholders in eight months.
Data from the Nigerian Exchange (NGX) showed the bank’s share price closed at N66, which is approximately a 16% discount below its 52-week high of N78.50. In the stock market, bargain hunting faded sharply last week in the absence of fresh catalysts that had fuelled rallies across sectorial indexes.
At the close of the trading session last week, the market value of Zenith Bank Plc declined to N2.710 trillion on 41.069 billion shares outstanding in the Nigerian Exchange. MarketForces Africa highlighted that the financial services group price movement was less volatile compared with the negative performance of the Nigerian Exchange.
Its contribution to overall banking index loss was, however, strong in relation to other small lenders with negative price movements. Zenith Bank Plc share price declined to N66 on Friday as 17.349 million units valued at N1.174 trillion were traded in the local bourse. The huge trading volume was led by sell-side traders who sought to take profit ahead of the bank’s earnings release.
The financial services company lost more than N164 billion from its opening market value as investors engaged in cautious trading amidst earnings delay The bank has indicated a plan to pay interim dividends, suggesting a healthy earnings performance for the first six months of operations in 2025.
The market valued Zenith Bank Plc’s 41.069 billion shares outstanding at N2.71 trillion, which is a significant discount to its highest value reached in the local bourse in 52 weeks.
Equity Analysts’ Expectations
Equity analysts sampled by MarketForces Africa Research have different expectations about the group expected earnings stream, with varied evaluations of the group business fundamentals. Alpha Morgan Limited is the most optimistic investment firm, sets the highest price target of N102 per share for Zenith Bank, suggesting huge upside potential of about 55% to its latest price.
The investment firm sees potential for strong upside where others played cool. Equity analysts at Afrinvest Securities Limited estimated a price target of N96.38 for Zenith Bank Plc with an upside potential of 37.70% on a reference price of N70 last week.
In its stock recommendation, Apel Asset Limited reported that the banking group has delivered a 53.85% year-to-date return to investors with the target price set at N78.81. Equity analysts at Cowry Asset Limited are now seeing 44% upside potential in Zenith Bank on a reviewed target price of N95.
Atlass Portfolio Limited thinks N80 is the right target price for Zenith Bank Plc, which analysts followed up with a hold or neutral recommendation due to limited upside potential of 14.29% at a reference price of N70 last week.