Afrinvest Downgrades Fidelity, FBNH, Stanbic Stocks to Sell
Equities analysts at Afrinvest Limited have kept shares of Fidelity Bank, FBNH and Stanbic IBTC on sell recommendation due to weak upside potential, detail from its week stock recommendation shows.
These stocks are noted to have negative upsides, which means they have hit an overbought level and are currently overpriced in line with Afrinvest estimates.
The investment banking firm remains bullish on tier-1 banking names like Access Bank, Ecobank and FCMB with neutral positions on UBA, UBN and Guaranty Trust Bank Plc including Wema Bank.
In terms of year-to-date return, UBA led the pack with more than 173%, followed by Unity Bank whose share has appreciated by more than 112% in 2023.
Ecobank Transnational Incorporation (ETI) Plc enjoyed a buying rating due to a more than 56% upside potential followed by Access Plc has about 32% upside.
Meanwhile, the investment firm advised investors to accumulate Zenith and Sterling, saying Unity Bank is now under review for its share recommendation. The tier-3 lender share price rallied by about 23% in the just concluded amidst rumour of a merger, and acquisition deal with Providus Bank.
The banking index has gained strongly in 2023, a spike in their respective prices was observed after the suspension of Godwin Emefiele as Central Bank governor – on an expectation that banking regulation will improve.