CI Capital revises 2 EGX-listed firms’ target prices
Updated 1/30/2023 2:30:00 PM
Arab Finance: CI Capital has revised the target prices of two companies listed on the Egyptian Exchange (EGX), namely Commercial International Bank Egypt (CIB) (COMI) and Telecom Egypt (ETEL), according to the research firm’s MENA Top Picks report issued on January 29th.
The research firm has set the target price of CIB’s stock at EGP 53.2 and $2.17, with an “Overweight” recommendation.
“We expect some degree of slowdown in 2023e loan growth for CIB, as the CBE’s subsidized loan initiative for the industrial sector stand not to be renewed,” the research note added.
As for Telecom Egypt, CI Capital has set its target price at EGP 34.4 per share, with an “Overweight” recommendation.
The company also expects Telecom Egypt to raise its dividend distributions given limited capex needs.
“Our model points to a 2023-25e FCF CAGR of c27%, implying a 2023e yield of c6.8%, and net debt/EBITDA of c1x, lower than its historical average of c2x. We project an average payout of c53% of standalone net profit over 2023-27e, yielding c8.3%, c4.5 pp higher than its 3-year historical average,” according to the note.
Related News
