Analysts Forecast High Yield For Transcorp Power Shares

Financial analysts and stockbrokers have forecasted high yield for Transcorp Power Plc for discerning investors, while also believing the Company’s listing presents opportunities for deeply enriching the nation’s capital market.

A cross-section of those who spoke on the listing said it would open the eyes of the players in the power sector to the low-cost funding opportunities provided by the capital market.

Speaking on the listing, managing partner, QL Resources Limited, Abdulmumin Ali said playing in the capital market will provide impressive rewards for investors and also help in enriching the Nigerian capital market.

According to him, Transcorp Power shares have already gained more than 47 percent since it was launched one week ago. The stock will sustain good performance in the market and investors who take early positions will reap immense benefits in the short to medium term.

“Anybody with investible funds at this time should buy Transcorp Power shares. Such investments will likely triple within the next one year,” Ali predicted.

Also speaking on the listing, CEO, Crane Securities Limited, Mike Eze said the listing of Transcorp Power on the Nigerian Exchange bodes well for both the newly listed company and Nigerian investors, adding that the Nigerian securities market remains the destination of choice for businesses in need of low-cost capital, while also providing the right opportunities for the diversification that improves governance.

Eze expressed confidence that the Nigerian securities market has the sophistication and stature to absorb any funding demands of the power sector companies such as Transcorp and urged other players to embrace the capital market.

“Ours is a market, though an emerging market was rated the best-performing market in the world in 2023 by the International Finance Corporation (IFC). We received favourable ratings from other international agencies as well. The capital market can raise funds to any required capacity. It all depends on the needs of the issuer! The Nigerian Exchange has the capacity and the appetite to take the demands of the power sector and indeed other sectors should they all decide to come at the same time,” he said.

Also speaking, managing director/CEO of De-Lords Securities Limited, Vincent Ugwu believed the capital market may eventually become the destination of most of the players in the power sector in Nigeria because of the advantages the market has in raising low-cost capital.

“There is no doubt that investors’ interest in the stocks of Transcorp Power will attract other players. Opportunities abound in the power sector in Nigeria. There are opportunities in the gas value chain, there are opportunities in widening the areas of coverage and there are also opportunities in cross-border selling of power. Discerning players such as Transcorp Power will always come to the capital market and get the sort of growth they dream of,” Ugwu stated.