Cairo - Mubasher: MubasherTrade Research has maintained their "Buy/Moderate Risk" rating for Sidi Kerir Petrochemicals, with a price target (PT) of EGP 25.53, according to a report issued on Sunday.
MubasherTrade believes that foreign exchange gains on USD-denominated deposits led to earnings beating expectations, while the existence of a pre-devaluation low-cost inventory triggered higher than forecasted operating margins.
“Starting 2017, we believe the full-year impact of EGP devaluation will give another boost to operating margins before normalising from 2018 onwards,” the report stated.
