Cairo – Mubasher: Arabeya Online initiated coverage on Arab Cotton Ginning, rising the stock's fair value to EGP 4.41, with 58.6% upside potential to current market price. It placed a "Buy" recommendation on the stock.
The research firm expects an increase in cotton cultivated land areas to 350,00 feddan in the fiscal year 2016-2017, to 500,000 feddan by the end of 2019/2020, which will boost the company's full-year revenues.
Arab Cotton Ginning standalone financial statements showed a rise in net profit for the first half of 2015/2016 by 139% to EGP 13.07 million.
