Guaranty Trust Holding Company Plc (GTCO), a leading Nigerian banking group, has reached a significant milestone in the stock market. Its market value has now exceeded ₦1.8 trillion, following a surge in demand for its shares.
- Record-Breaking Share Price
On Friday, GTCO’s share price hit ₦61.25, its highest in the past year. Over the week, the stock consistently gained value, showing strong investor confidence. - Why Are Investors Interested?
Analysts believe GTCO’s financial performance has been solid, thanks to higher interest rates and profits from foreign exchange gains. The bank is also known for managing its costs effectively, which helps maintain strong profit margins.
In the first nine months of 2024, GTCO’s earnings exceeded ₦1 trillion, driven by growth in both its core banking operations and other income sources. This impressive performance has led analysts at Cordros Capital Limited to increase their price target for GTCO shares to ₦72.85 and maintain a “BUY” recommendation.
- What’s Next?
Experts predict GTCO will continue to perform well in 2024 due to high-interest rates, gains from a depreciating naira, and effective cost management. However, they also note potential risks, such as regulatory challenges and Nigeria’s weak economic environment.
Investors can expect GTCO to pay a dividend per share (DPS) of around ₦4.00 in 2024, making it an attractive option for those seeking steady returns.
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