Feb. 12 (Bloomberg) -- Kenya Power Ltd., the East African nation’s sole electricity distributor, climbed to the highest in more than 19 months after it was recommended at long-term buy by Kestrel Capital East Africa Ltd.
The stock advanced 1.6 percent to 19 shillings by the close in Nairobi, the highest since June 30, 2011. More than two million shares, almost triple the three-month daily average, changed hands as the stock rallied for an eighth day.
Kenya Power was given a target price of 22 shillings, Kestrel said in an e-mailed note to clients yesterday, citing “vast opportunities” in the country’s power industry, where the penetration rate stands at 30 percent, compared with 99 percent for North Africa.
The utility company is also one of the 2013 stock picks for Nairobi-based Old Mutual Securities Ltd. The stock has climbed 11 percent this year.
Kenya Power is attractive because of the “vast opportunity in the power sector as a result of low penetration rate” and increased revenue from its rural electrification program, Old Mutual said Jan 28.
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