…as Zenith, GTBank, Fidelity, First Bank, UBA lead

The Nigerian banking sector is witnessing a resounding resurgence, propelled by stellar earnings, compelling valuations, and renewed investor conviction.

A flurry of “BUY” recommendations from top research firms has ignited bullish momentum, with Tier-1 and mid-tier lenders posting eye-catching returns and promising further upside.

Zenith Bank Plc emerged a clear leader, notching a trailing return of 53.19%, rising from N44.00 to N69.70.

Analysts at Meristem Securities forecast a further 16.52 per cent upside to a 12-month target of N81.22, anchored on solid fundamentals—Return on Equity (ROE) of 26 per cent, Return on Assets (ROA) of 24 per cent, and attractively low valuation multiples (P/E: 2.01x, P/B: 0.49x).

Guaranty Trust Holding Company (GTCO) also drew bullish sentiment, surging 65.09 per cent year-to-date to N94.10, with analysts targeting N116.48, implying an toptier pick.

Fidelity Bank Plc continued to captivate investor interest, with analysts predicting a 48.35 per cent upside to N31.45.

The stock, currently trading at N21.20 from N16.75, boasts enviable metrics—27 per cent ROE, 36 per cent ROA, and modest valuations of 2.01x P/E and 0.73x P/B. First Bank Holdings (FBNH), once beleaguered, is riding a wave of investor optimism.

The bank posted a 3.92 per cent trailing gain, with Meristem projecting a 32.60 per cent upside to N38.65.

A staggering 100 per cent ROE and subdued P/E of 1.80x suggest the lender’s turnaround has gathered formidable momentum.

United Bank for Africa (UBA) impressed with a 28.09% price rally, rising from N31.30 to N43.55.

However, with analysts projecting a marginal downside to N42.59 and issuing a “HOLD” recommendation, sentiment points to a stock nearing full valuation.

Nevertheless, its fundamentals remain solid—24 per cent ROE, 22 per cent ROA, and a lean 1.83x P/E. Ecobank Transnational Incorporated (ETI) is gaining traction among value investors, climbing 21.25 per cent and forecast to rise another 40.90 per cent to N47.83.

With ROE and ROA of 24 per cent and 26 per cent respectively, alongside deep value metrics (P/E: 0.80x, P/B: 0.21x), the stock is firmly in the “BUY” zone.

Stanbic IBTC Holdings also earned a bullish nod, delivering 45.92 per cent gains and a further projected upside of 14.42 per cent to N96.17. Its strong fundamentals—34 per cent ROE, 32 per cent ROA—and premium valuation reflect institutional confidence.

Mid-cap plays such as Sterling Financial Group and Jaiz Bank are drawing speculative flows, with forecasted upsides of 23.68 per cent and 26.92 per cent respectively, amid rotation into high-growth, under-theradar names.

Access Holdings Plc (ACCESSCORP) was not left out, rallying 13.47 per cent to a target price of N28.14, backed by 14 per cent ROE and 18 per cent ROA.

With a low P/E of 1.99x, the stock offers a hybrid of growth and value.