Cairo - Mubasher: Pharos Research has maintained its "Overweight" recommendation on the stock of Global Telecom Holding (GTH), with a target price (TP) of EGP 7.40, according to a recent report.
Global Telecom announced receiving a court order to pay Atheer Telecom a settlement of $60 million, plus interest of $7.7 million and an interim payment of legal costs amounting to GBP 1.2 million, the report stated.
The trial court judge denied GTH’s request for appeal. However, the company will get the opportunity to reappeal before 22 March 2017.
“The compensation verdict by the court is in line with our estimates, as we expected per share liability ranging from EGP 0.2 to EGP 0.3. We don’t rule out debt for financing the settlement, as management implied previously exploring the option," the research firm stated.
“Our sum of parts valuation for Global Telecom, including court settlement, calculates a TP of EGP 7.40 per share, excluding the proceeds from the tower sale, which could potentially add EGP 1.90 to EGP 3.80 per share,” the research firm added.
