Equity Analysis /
Egypt

ETRS 2018 valuation update: Not quite over yet

    Tellimer Research
    14 January 2018
    Published byTellimer Research
    We upgrade our TP to EGP20/Share, while maintaining an Overweight recommendation, as margins improved dramatically compared to our expectations. Our previous note included conservative assumptions, as expectations pointed towards returning to normal margins post clearance of power projects backlog. However, margins continued to impress as one third of topline is denominated in USD, compared to costs, which are mostly denominated in Egyptian pounds. Our SOTP valuation includes valuation for the following subsidiaries.