United Bank for Africa Plc, Nigeria’s fifth-largest lender by market value, climbed the most in more than six years after Vetiva Capital Management Ltd. raised its recommendation for the stock to buy from hold.
The shares surged by the daily limit of 10 percent to 7.26 naira at the close in Lagos, the Nigerian commercial capital where UBA is based, the biggest gain since August 2006. UBA has added 65 percent this year, compared with the 18 percent increase in the Nigerian SE Banking Index, 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.
Profit for the nine months through September rose more than fourfold to 39.1 billion naira ($248 million) from 7.4 billion naira, UBA said in October. The bank hasn’t yet reported full-year earnings for 2012.