Cairo - Mubasher: Pharos Research upgraded the fair value of Telecom Egypt from EGP11 per share to EGP14.11 per share, while maintained its equal weight recommendation.
Pharos upgraded its valuation for Telecom Egypt mainly on the inclusion of mobile services, updating the FV contribution of Vodafone Egypt and reviewing its assumptions for the fixed line and data services after the recent license acquisition.
The research house stated that Vodafone Egypt is the key value driver; Fixed and data services contribute minimally Telecom Egypt’s minority stake in Vodafone Egypt contributes 72% to our FV, with EGP10.20 per share, assuming an EV/EBITDA multiple of 5.8x.
Pharos also noted that there are no clear indicators whether Telecom Egypt will be selling the minority stake or buying Vodafone Egypt entirely.
