Why JP Morgan is recommending UBA shares to investors

US based investment banking giant, JP Morgan, has placed UBA shares on the hot list of stocks investors should take position on now.


The Investment Bank says investors that buy UBA shares now have a chance of making as much as 45% return over the next 12 months.  

UBA's share price closed at N7.77 on Friday, November 15, 2013 on the Nigerian Stock Exchange (NSE).  The Investment Bank believes that the share price could go above N11.00 per share within the next 12 months.

JP Morgan’s recommendation is in its latest analysis of Nigerian Banks.

“UBA offers an attractive 45% upside potential over 12 months, among the highest in CEEMEA banks” the JP Morgan report released October 2013, states.  CEEMEA is an acronym for Central and Eastern Europe, Middle East and Africa.

 “We think UBA’s valuation, despite a strong rally since the beginning of the year, offers an opportunity to buy into probably the deepest valuation discount in CEEMEA banks at current levels”  JP Morgan  writes in the in-depth 39 page analysis of the performance of top Nigerian banks.

 The JP Morgan report lists the rational for the recommendation to include the fact that UBA benefits from significant balance sheet liquidity noting that the bank’s loan to deposit ratio of 37% as at half year 2013 was the lowest among CEEMEA banks covered by the investment bank.

UBA pan-African presence is also seen as strength in the Bank’s operations. JP Morgan notes that UBA has the highest number of subsidiaries in Africa among the top-tier Nigerian Banks with positions in 18 African countries outside Nigeria and potential to drive future revenues on rising intra-Africa trade.

“This pan-African presence and valuation discount increases the attractiveness of UBA as a potential take-out story, in our view, given our understanding on larger regional banks (e.g. South African banks) for pan-African franchises such as UBA's.”

  “UBA’s valuation is an opportunity to buy into what may be the most attractive risk-reward in CEEMEA banks” the report states.


Share on Google Plus

About Blogger@UBA

3 comments:

  1. DO YOU NEED A LOAN TO START UP OR EXPAND YOUR BUSINESS? Zion financial services is a sincere and certified private Loan company approved by the Canada Government, we give out international and local loans to all countries in the world, Amount given out $2,500 to $10 Million. We offer loans with a dependable guarantee to all of our clients. Our loan interest rates are very low and affordable with a negotiable duration.

    Available now are
    MORTGAGE LOANS, PERSONAL, START-UP & EXPANSION OF BUSINESS LOANS AND NEW ARE UNSECURED & SECURE LOANS, CONSOLIDATE LOANS

    Apply for a loan today with your loan amount and duration, Its Easy and fast to get 3% interest rates and monthly installment payments. email us now to apply: zionloanfirm.ltd@aol.com

    TO APPLY CONTACT:
    Peter James
    General Manager
    zion capital investment, Canada
    Email: zionloanfirm.ltd@aol.com

    ReplyDelete
  2. I was thinking that Illuminati is not real, But today with Mr david I now believe that Illuminati is real, when you come across wrong person’s you will think that life is not real but when you are with the real one you will experience the goodness of your life, To MR David has made me discovered my purpose of life. Welcome to the great brotherhood of Illuminati 666: WhatsApp Mr David +234-811-338-8018 Russia , and every other Country’s on how to join the Illuminati brotherhood to get rich and famous, You may be a politician, business man/woman ,musical artist, student, footballer or whatever occupation you do, you want to be rich, powerful and famous in life. Illuminati can grant all your heart desires join the Illuminati to become rich and famous in life, Illuminati will make you achieve your dream to become rich and protect you all the days of your life  join the great illuminati brotherhood via email: lorddavid2345@gmail.com          

    ReplyDelete
  3. Hey friends! I am not a rich boy but like to travel a lot with my friends, and want to see all the beauty of the nature. Our last visit were in Rome. There are beautiful places and nice truly people. But, are you looking for writing agency to buy homeworks online? Worry no more and ask authors for assistance. Our writers will finish your essay in the proper format and structure the essays well according to your university guidelines. If you would like to get more useful information, simply click on this webpage and ask nursing pico questions.

    ReplyDelete