Dubai-Mubasher: MubasherTrade Research (MTR) maintained the price target (PT) of Dubai-based courier Aramex at AED 4.79, with “Buy/Moderate Risk” recommendation, according to a recent report.
Aramex posted a 36% increase year-on-year in its earnings to AED 125.7 million, beating MTR estimates of AED 97.5 million and consensus of AED 96.9 million by 29% and 30% respectively.
Revenues increased 17% year-on-year to AED 1.10 billion, slightly higher than MTR estimates of AED 1.06 billion (variance: +4%) and consensus of AED 1.05 billion (variance: +5%).
“Revenues gained momentum driven by the strong growth in the international express segment in the US, Europe and Asia on higher e-commerce demand,” the report highlighted, adding that “the domestic express segment continued to shine by in-organic expansions, namely the acquisition of Fastway Limited in January 2016”.
The growth in the freight business remained relatively stagnant as forecasted, as a result of the drop in global oil prices and currency fluctuations.
