Zenith Bank closed the week ended October 18 at N22.04 taking the stock to its highest level since June 12 2013. The price still represents a price to book ratio of 1.5x and a P.E ratio of 7x. Considering, how “strong” the bank is many still see this price as cheap and a good value proposition. In fact, according to the Punch newspaper, Banking analyst at Renaissance Capital, Mr. Adesoji Solanke said this about the share price;
this was “cheap compared to its peers in the Nigerian banking industry and emerging market banks.We rate the stock a buy, at a target of N25.30. The nation’s largest lender, Guaranty Trust Bank Plc, has a price-to-book value of 2.7 times. Zenith looks attractive even as Renaissance Capital reduced its full-year 2013 estimated profit by seven per cent to N91bn ($569m).
What do you think? Zenith Bank is in Ugometrics Portfolio and was bought for (N22 including fees).