Tier-One Nigerian Lender FirstHoldCo PLC has been re-rated to a BUY with a 12-month target price of N35.65 due to its imminent capital injection, which is positive for the outlook and valuation.
“We opine that the inflows from the concluded first phase of its capital raise bodes well for capital adequacy computation, boosting the capital adequacy ratio (CAR) above its 3-year mean of 17.0%. This turnaround could facilitate an improvement in dividend payout (above its 3-year mean of 6.0%) as management has stated that upon the capital raise completion, better dividends will be paid,” Cardinal Stone Partners equity analysts led by Stephen Chima, said in a note to clients released on Thursday (June 05).
“Revisions to our model have yielded a new 12-month target price (TP) of N35.65 (previously N28.50)— with a BUY recommendation on the ticker. While FIRSTHOLDCO currently trades at a price to book (P/B) of 0.33x, our new TP implies a conservative exit P/B of 0.42x (vs its 5 year mean of 0.44x).
FirstHoldCo has said that the capital verification process for the first phase of its capital raise has been concluded, and a total of N150.0 billion was confirmed by the bank during its Full year (FY) 2024 analyst call, providing support for capital adequacy, business development, and growth.
The new capital raised will help FirstHoldCo meet the Central bank of Nigeria (CBN) capitalization rules well ahead of the March 2026 deadline and also be used to fund growth and other strategic business initiatives.
The Chairman of FirstHoldCo Plc Femi Otedola recently said he would invest N300 billion in the institution during the Bank’s annual general meeting (AGM) in Lagos, which would provide further bid on the stock.
FirstHoldco stock closed trading at N29.40 per share on Thursday (June 05), meaning the new Cardinal Stone Partners price target could provide a 17.5% upside from current levels.
The lender has a market capitalization of N1.23 trillion and has a 1-year return of 33.3%.
FirstHoldCo is forecasting a stronger performance for the Full Year 2025 period, underpinned by:
The rollout of its strategic plan
Loan book expansion
Disciplined approach to cost management
Growth in the retail banking segment
Ongoing efforts to explore new business opportunities
First Holdco Plc delivered a stellar Full Year 2024 performance, with profit after tax soaring 115.1% to N663.5 billion, driven by a 156.5% YoY surge in net interest income (NII) and a 27.8% rise in non-interest income (NIR).
First HoldCo Plc (FirstHoldCo) is a financial holding company and one of the largest financial services organisations in Africa.
It is a diversified and leading financial services group offering a broad range of products and services through its subsidiaries, across commercial banking, asset management, capital markets, trusteeship and insurance brokerage to millions of customers.
FirstHoldCo has oversight over its subsidiaries and drives group coordination, collaboration and synergies among other principal activities towards innovative financial solutions and enhanced shareholder value.
kiralık Bahis Sitesi Adminlik
Every weekend i used to pay a visit this web page, for the reason that i want enjoyment, since this this web site conations in fact fastidious funny material too.
d9leuw