Cairo – Mubasher: Palm Hills’s fair value (FV) is set at EGP3.93 per share, said Beltone Research, putting forward a “Buy” recommendation on the stock.
The research firm raised its fair value estimates for Palm Hills from EGP2.95, whose market value hits EGP7.5 billion, as the current stock quote excludes the value of new housing and commercial projects, which are expected to boost the company’s sales, the research note indicated.
Sales and deliveries on the level of all real estate projects are forecast to register the lowest scale in the second quarter of 2016 due to some changes in market factors on certain occasions like the month of Ramadan.
During 2016, the real estate developer delivered 377 units and registered EGP1.072 billion revenues.
In the first quarter of 2016, the company’s profits declined 43.19% year-over-year to EGP105.43 million ($11.90 million) from EGP185.59 million ($20.95 million).
