Cairo – Mubasher: Pharos Research set the fair value (FV) of Palm Hills Development (PHD) at EGP 3.47 per share, with “Buy” recommendation, according to a recent report.
The market price doesn’t reflect the firm’s raw land plots, the research firm noted.
PHD is currently negotiating the potential signing of an agreement with the New Urban Communities Authority (NUCA) to develop 6,000 feddans in 6th of October City, as well as the acquisition of two land plots in the North Coast.
“If these negotiations prove fruitful and materialize into contracts, they will definitely be a key catalyst for share price performance and will represent a key upside revision of our FV,” the report noted.
Pharos expected the company to generate EGP 5.8 billion from contracted sales in 2016, believing that sales momentum will continue over the next two-four quarters. The sales will be driven by North Coast sales in Q3-16, and the launch of the 500 Feddan Project in Q4-16 and Hacienda West in H1-17.
