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ZENITHBANK: Future Earnings Momentum Will Drive Upside As Margins Improve

ZENITHBANK: Stronger Revenue And Margin Outlook Will Drive Share Upside

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ZENITHBANK
AnalystConsensusTarget
Not Invested
Published 25 Apr 2025

Update shared on 16 Dec 2025

Fair value Increased 7.27%
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AnalystConsensusTarget's Fair Value
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1Y
44.3%
7D
-1.6%

Analysts have raised their price target for Zenith Bank by approximately 7 percent to align with an updated fair value estimate of about $84. This change reflects slightly stronger expected revenue growth and a marginally lower discount rate, which more than offset a small reduction in projected profit margins and a modestly higher future price-to-earnings multiple.

What's in the News

  • Board meeting scheduled for October 30, 2025, to review unaudited financial statements for the third quarter ended September 30, 2025 (company filing).
  • Board meeting held on September 22, 2025, to consider the appointment of an independent non-executive director and the retirement of an executive director (company filing).

Valuation Changes

  • Fair Value Estimate has risen moderately from about NGN 78.33 to around NGN 84.02 per share, reflecting a roughly 7 percent upward revision.
  • Discount Rate has edged down slightly from approximately 29.60 percent to about 29.57 percent, indicating a marginally lower perceived risk profile.
  • Revenue Growth assumption has increased modestly from around 22.33 percent to roughly 23.66 percent, implying slightly stronger top line expectations.
  • Net Profit Margin forecast has eased slightly from about 45.14 percent to around 44.50 percent, signaling a minor reduction in expected profitability.
  • Future P/E multiple has risen moderately from roughly 3.85x to about 4.05x, suggesting a somewhat higher valuation relative to expected earnings.

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Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.