Cairo – Mubasher: Pharos Research has upgraded their fair value (FV) for Sixth of October for Development and Investment’s (SODIC) stock to EGP 45.50 per share from EGP 27.77, maintaining their “Overweight” recommendation.
Upgrading the FV was driven by raising the research firm’s sales forecast for 2018 to EGP 7.7 billion from EGP 5.7 billion as a result of adjusting the selling price in SODIC East, in addition to the newly signed North Coast co-development project, according to a recent report by Pharos Research on Wednesday.
The FV was also impacted by the adjustment in the land price of Al Yosr land, as well as SODIC’s latest receivables and net cash position, the report added.
As per the potential deal between SODIC and Madinet Nasr for Housing and Development (MNHD), the report shows that closing the deal would have a strategic impact on both firms as “SODIC being the established developer and MNHD being the coveted land bank owner”.
Pharos forecast that SODIC would benefit more than MNHD from implementing the potential deal.
On Wednesday, SODIC welcomed to enter preliminary negotiations with MNHD to discuss possible collaboration.
On Tuesday, the board of MNHD has discussed possible coordination with SODIC and has agreed on appointing EFG Hermes and Zaki Hashem and Partners Law Firm as the company’s legal advisors for the deal.
