Equity analysts at Cowry Asset Management Limited have set a target price of ₦71 per share for United Bank for Africa (UBA) Plc, signalling significant upside potential ahead of the lender’s fourth-quarter earnings release.
The revised valuation comes as the Nigerian Exchange (NGX) enters 2026 on a strong bullish trajectory, following a year in which the market delivered gains of more than 50 per cent. Total market capitalisation of listed equities rose to approximately ₦99.4 trillion, reflecting renewed investor confidence.
Banking stocks contributed positively to market performance, with the NGX Banking Index advancing by 2.96 per cent as investors positioned ahead of earnings announcements.
In a note to investors, Cowry Asset Management highlighted UBA as one of the most attractive opportunities within the financial services sector, citing expectations of robust earnings growth despite tightening regulatory conditions.
Analysts at the firm said their outlook is anchored on projected improvements in earnings per share, driven by UBA’s diversified operations and resilient balance sheet.
The bank is expected to sustain profit growth in the fourth quarter of 2025, even as regulatory changes, including the withdrawal of pandemic-era forbearance and stricter single obligor limits, weigh on some of its peers.
If Cowry’s target price materialises, investors could realise gains of up to 65 per cent from current levels. However, such gains would likely fall under the capital gains tax framework scheduled to take effect from 2026.
UBA stood out among tier-one banks in 2025, as it was the only lender in the category to post profit growth at the nine-month mark of the financial year.
Cowry Research forecasts earnings per share of ₦9.16 for the bank and has classified UBA as a top-buy stock for investors seeking exposure to Nigeria’s banking sector.
At a unit price of ₦43, the market value of UBA’s 41.03 billion outstanding shares stood at approximately ₦1.764 trillion. The stock was trading about 15 per cent below its 52-week high of ₦50.55, while remaining comfortably above its 52-week low of ₦30.50.
Analysts said the valuation gap, combined with earnings resilience and regional diversification across Africa, positions UBA favourably as investors look ahead to the earnings season and broader market developments in 2026.
 Plc, signalling significant upside potential ahead of the lender’s fourth-quarter earnings release.){kind=link}