Dubai-Mubasher: MubasherTrade set the price target of NASDAQ Dubai-listed DP World (DPW) at $26.28 per share, with “Buy/Moderate risk” recommendation, according to a recent report.
DP World (DPW) operates a diversified portfolio of 65 container terminals across the globe, with a focus on high-growth markets.
The company pursues an ambitious expansion plan to meet increasing demand in high-growth areas.
DPW acquired Economic Zones World (EZW) in 2015, a value-boosting transaction due to expected EZW's higher profitability.
The report added that key risks include economic instability in Europe could pressurize volume growth, geopolitical risk in the Middle East, sporadic labor strikes that could affect operations, and failure to maintain and renew concession agreements at its existing facilities.
Lifting Iran sanctions is a positive for volume growth, provided that Iran does not have a developed port infrastructure and Jebel Ali has always been a transshipment gateway to Iran.
When new sanctions were imposed on Iran in 2013, DPW lost around 22% of UAE volumes. So, the potential lifting of Iran sanctions should raise volumes at Jebel Ali.
