The United Bank for Africa Plc’s share price has increased by 95% in a year, garnering analysts’ ratings.
According to BusinessDay, financial analysts support the bullish market sentiment and continue to suggest a buy recommendation on UBA shares, which have attracted a lot of interest from domestic and international investors after years of being undervalued.
Chapel Hill Denham analysts recommended UBA shares, estimating the share price at N28.30. According to Afrinvest analysts, UBA’s share price might increase from its current N14.90 per share to N19.10 per share.
The shares might sell for as much as N15.16 per share, according to Meristem analysts, while earlier forecasts from analysts at Stanbic IBTC and FBN Quest pegged UBA shares to sell for N16.20 and N21.90 per share, respectively.
For a long time, UBA shares did not reflect the bank’s true intrinsic worth, causing investors to overlook its outstanding fundamentals and potential.
However, recent events have sparked a resurgence in interest in the company, indicating that market participants are increasingly cognizant of the bank’s untapped potential and promising future.
The strategic positioning of the bank, in addition to a strong financial profile and excellent corporate governance practises, have all contributed to the stock’s upward trend. This has made the bank more appealing to investors and contributed to its upward trend.
According to the bank’s first quarter financials, earnings before tax increased 38.2% to N61.4 billion in Q1 2023 from N44.5 billion in Q1 2022.
In a similar vein, UBA’s profit after tax increased by 29%, from N41.5 billion to N53.6 billion.
Analysts have stated that the bank had one of the greatest first-quarter results, which has increased interest in its stocks.
According to UBA, the bank’s skilled and forward-thinking management team, along with its creative approach to digitization, have increased confidence in the bank’s capacity to navigate the evolving financial landscape successfully.
The bank has a significant presence in 20 African nations, making it a desirable investment choice for individuals seeking exposure to the constantly expanding markets on the continent.
According to analysts, the increasing interest in UBA shares has been confirmed by their ‘buy’ recommendation, which is based on the bank’s solid fundamentals and favourable market dynamics.
As interest in UBA shares grows, the bank said it anticipates using this newfound momentum to further solidify its position as one of the top financial institutions in Africa.
As the economy continues to recover from recent global issues, UBA is well-positioned to profit from the rising demand for financial services in Africa.
