Dubai – Mubasher: MubasherTrade Research on Wednesday modified Orascom Construction Company’s price target (PT) on the Egyptian Exchange (EGX) to EGP 139.39 per share from EGP 140.31 in the previous study.
MubasherTrade also downgraded recommendation on the stock to 'sell/moderate risk' from 'buy/moderate risk' due to the cancellation of 1 million treasury shares by the company, according to a study posted by the research firm.
As for the company’s stock on Nasdaq Dubai, MubasherTrade adjusted the stock’s PT to $7.88 per share from $7.82, while downgrading its rating to 'Hold/Moderate risk' from 'Buy/Moderate risk', the study revealed.
Orascom Construction's consolidated profit dropped19% to $23.5 million in the third quarter of 2017 from $ 29.2 million in the comparative period last year on the back of lower revenues.
The company’s revenues in the Middle East and North Africa (MENA) region rose 9% year-on-year to $518 million in the three-month period ended 30 September 2017.
“Orascom Constructions signed new contracts worth of $550 million in Q3-17 in Egypt in transportation, power, and water treatment sectors, in addition to contracts in the New Administrative Capital and New Alamein City,” the study noted.
Furthermore, the company completed the construction at Iowa Fertilizer Company, adding that the facility is operating above its projected capacity, MubasherTrade concluded.
