Kenya Commercial Climbs Second Day in Three on ‘Buy’ Rating

Kenya Commercial Bank Ltd. (KNCB), the country’s third-biggest lender by market value, climbed for a second day in three this month after Standard Investment Bank initiated coverage of the stock with a “buy” recommendation.

The shares closed up 0.3 percent at 15.05 shillings as of 3 p.m. in the capital, Nairobi, matching the gain of Dec. 1.

“Based on our three years-out earnings forecasts, at current market capitalisation there is 43.2 percent upside,” for all publicly traded Kenyan lenders, Nairobi-based Standard Investment said in an e-mailed note to clients on Dec. 2.

KCB, as the lender is known, has a fair value of 31.49 shillings over three years, giving it an upside of as much as 110 percent, according to the note.

To contact the reporter on this story: Eric Ombok in Nairobi at eombok@bloomberg.net

To contact the editor responsible for this story: Shaji Mathew at shajimathew@bloomberg.net

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