United Bank for Africa Plc, Nigeria’s fifth-largest lender by market value, rose for the first time in eight days after Vetiva Capital Management Ltd. upgraded the stock and said it was trading at a discount to its price target.
The shares advanced 3.8 percent to 6.85 naira at 11:29 a.m. in Lagos, the Nigerian commercial capital where UBA is based, set for the biggest closing gain since April 3. UBA has gained 55 percent this year, compared with the 17 percent increase in the Nigerian SE Banking Index (NGSEB10), which tracks the nation’s 10 most-capitalized lenders.
UBA, which closed at 6.6 naira last week, is trading at a 22 percent discount to Vetiva’s 8.5 naira year-end price target, Vetiva analysts led by Pabina Yinkere in Lagos wrote in an e- mailed note today. The stock was upgraded to buy from hold.
The bank’s profit for the nine months through September rose more than fourfold to 39.1 billion naira ($248 million) from 7.4 billion naira, it said in October. UBA hasn’t reported full-year earnings for 2012 yet.
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