GTCO Plc continues to rank among the most attractive Nigerian bank stocks, with Afrinvest projecting a 12-month target price of N69.26, implying an upside of more than 80% from the stock’s current trading level of around ₦38.
In its latest equity research update, Afrinvest retained a BUY recommendation on GTCO, noting that the stock remains materially undervalued despite the rally in Nigerian banking shares over the past year.
The investment firm highlighted that GTCO trades at a trailing price-to-earnings (P/E) ratio of roughly 1.0x and a price-to-book value (P/BV) of about 0.4x, reinforcing the view that Nigerian banks continue to trade at steep discounts relative to earnings strength and capital quality.
Dividend-Led Investment Case
Afrinvest underscored GTCO’s double-digit dividend yield as a central pillar of the investment thesis, positioning the stock as both a value and income play.
According to the firm, GTCO’s conservative risk management framework, strong capital buffers, and consistent profitability enhance the sustainability of dividend payouts, even amid Nigeria’s volatile macroeconomic and policy environment.
Why Afrinvest Says the Upside Remains Intact
While acknowledging GTCO’s solid year-to-date performance, Afrinvest argued that current valuations still fail to fully reflect:
FX revaluation gains already recognised in earnings
Consistent fee-based and trading income
Strong return on equity relative to sector peers
The firm believes these factors support further re-rating as investor confidence in the banking sector improves.
Investor Takeaway
Afrinvest’s assessment positions GTCO Plc as a core defensive banking stock, combining low valuation, resilient dividends, and earnings strength.
For investors seeking dependable income alongside capital appreciation within Nigeria’s equity market, GTCO remains one of the highest-conviction names in the banking sector.