Cairo – Mubasher: Beltone Research slashed its fair value estimate for landline operator Telecom Egypt by 25.5% to EGP 10 per share, from previous fair value of EGP 13.38, with 58.1% upside potential from current market price.
The research firm assigned a ‘Buy’ recommendation on the stock.
The valuation took into consideration financial results for the third quarter of 2015, said Beltone, adding that it lowered revenues projections by an average of 28.0% during the period 2015-2019 by a compound annual rate of 4.8%.
Beltone also lowered its estimates for TE’s EBITDA by 18.5% during 2015-2019, expecting it to decline by a compound annual rate of 4.7%, taking into account current pressures on voice services and higher payroll.
