Top-rated independent investment advisory firms have given Fidelity Bank a glowing recommendation, labeling it as a very attractive stock with the potential to deliver high returns for investors.
Various market pundits, in their independent investment research reports released over the weekend, have assigned a “buy” rating to Fidelity Bank, urging investors to consider the bank’s promising returns.
These reports were based on a thorough analysis of the bank’s historical and current operational performance, as well as its strategic growth plan.
Factors such as the quality of the board and management, as well as the overall human capital and resources of the bank, were also taken into consideration.
Notable investment advisory firms such as Afrinvest Group, FSDH Capital, and CardinalStone were among those who endorsed Fidelity Bank’s stock.
Analysts unanimously agreed that Fidelity Bank’s share price has the potential to double in the near future, based on a professional assessment of key performance indicators such as operational reports, investor sentiment, and future projections.
CardinalStone specifically highlighted Fidelity Bank’s “robust earnings growth” and the increasing profitability of its core banking operations as reasons for the stock’s potential to double in price.
FSDH Capital, after a comprehensive review of global and domestic stock markets, selected Fidelity Bank as one of its “FSDH Top Picks”, a group of stocks deemed most attractive for discerning investors.
Their selection process took into account factors such as pricing history, dividend history, fundamental values, and peer ratios.
Afrinvest shed light on the rigorous research process involved in selecting stocks, emphasizing the importance of valuation methodologies such as Discounted Cash Flow (DCF), Dividend Discount Model (DDM), Free Cash Flow (FCF) model, and Residual Income Valuation/Model (RIV/RIM).
The “buy” rating indicates that analysts expect a total return of 25% or more over the next 12 months, advising investors to take positions at the current market price.
Afrinvest projected that Fidelity Bank, with a dividend yield of 9.3%, has a price upside potential of over 35%, making it an attractive option for investors looking to hedge against inflation.
Futureview Group commended Fidelity Bank’s recent operational reports, highlighting the bank’s excellent performance and diversified income sources.
The audited report for the year ended December 31, 2023, showed a 65% increase in gross earnings to N555.83 billion, driven by growth in interest income, other operating income, and fee and commission income.
Net profit after tax also saw a significant increase of 99% to N99.46 billion in 2023, with earnings per share (EPS) jumping by 93% to N3.11.
The bank’s first-quarter report for 2024 revealed impressive growth across key performance indicators, with gross earnings increasing by 89.9% to N192.1 billion. Profit before tax doubled to N39.5 billion, driven by growth in market share, total deposits, and net loans and advances.
Fidelity Bank’s Managing Director, Nneka Onyeali-Ikpe, attributed the bank’s strong performance to its focus on customer-centricity, digital innovation, and operational excellence.
Ranked as one of Nigeria’s top banks, Fidelity Bank serves over 8.5 million customers through its 251 business offices in Nigeria and the UK, as well as digital banking channels.
The bank has received numerous awards, including Export Finance Bank of the Year and Best SME Bank in Nigeria, reaffirming its position as a leading financial institution.
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