Cairo – Mubasher: Pharos Research has reduced their fair value (FV) on Orascom Construction PLC’s stock to EGP 180 per share, maintaining ‘Overweight’ recommendation.
The FV decrease was driven by fewer than expected awards, as well as the deduction of 0.25% of the company’s revenue from Egypt’s operations for the healthcare tax, according to a recent report.
BESIX Group contributes $2.5 per share to the FV, whilst Orascom contributes $7.6 per share, Pharos added.
Orascom is likely to carry over into its payout in the absence of guidance regarding expansion plans, the research company projected.
The Egyptian firm is currently trading at fiscal year 2019 price/earnings ratio of 4.9 times, the report indicated.
Orascom Construction, listed on the Egyptian Exchange (EGX) and Nasdaq Dubai, previously reported a 37% year-on-year increase in consolidated profit for the third quarter of 2018.
Net profits stood at $32.3 million during the three-month period ended September, versus $23.5 million in the year-ago period.
Revenue shrank to $728.8 million in Q3-18 from $805.4 million in the same period a year earlier.
In the first nine months of the year, the company logged $119.3 million in profits, versus $82.3 million for the corresponding period of 2017.
