Cairo - Mubasher: MubasherTrade Research has downgraded its rating for Sidi Kerir Petrochemicals (Sidpec) Company from Buy/Moderate Risk to Hold/Moderate Risk, according to a recent report.
The research firm also raised the stock’s price target (PT) by 45% from EGP 25.5 to EGP 37 per share.
MubasherTrade cited the prevailing stability in the Egyptian economy and the expected slowdown of inflation rates, as well as the increased selling prices for polyethylene and ethylene products to reflect changes in the global commodity market.
“We adjusted the non-material cost higher to reflect 2017 performance,” the report noted.
Sidi Kerir Petrochemicals showed a 21% year-on-year drop in profits for 2017 to EGP 1.13 billion from EGP 1.42 billion in 2016.
However, revenues increased to EGP 4.9 billion in 2017, compared to EGP 3.4 billion in 2016.
