Cairo – Mubasher: GB Auto is forecast to log EGP 150 million losses during the fourth quarter of 2016, thus hitting EGP 350 million losses over the whole fiscal year, according to a research note by Beltone Financial.
The research firm further set the stock's fair value at EGP 3.53 and assigned a 'Buy' rating on the stock, expecting a recovery process to start as of the fiscal year 2017, the research note revealed.
Improvement in the stock performance will be mainly driven by reforms related to the exchange rate system, after the bank of Egypt free floated the pound, the note indicated.
Earlier, the company announced recording EGP 184.9 million during the first nine months of 2016, lower 12% year-on-year from EGP 209.66 million.
In last September and before the X-rate liberalization, Prime research lowered the fair value by 8% to EGP 3.33 per share, strongly recommending 'Buy" on the stock.
By 11:08am CLT on Thursday, the stock quote was placed at EGP 2.93 with a 1.74% rise.
