Cairo – Mubasher: Prime Research initiated coverage on Obour Land for Food Industries’ stock with a fair value (FV) of EGP 12.34, with an expected growth of 38.1%.
The FV of Obour Land is relatively higher than its trading price, the statement said, adding that Obour Land is currently trading at P/E of 7.44x.
The company’s FV is expected to reach EGP 30.17.
The expected rise in Obour Land’s FV is mainly backed by the acquisition of a higher-than-expected share in the white cheese sector, in addition to its success in the new segments of mozzarella, processed cheese, juice and milk.
The stock’s price may decline due to the shortage of foreign currency and the fluctuations of the Egyptian pound against the US dollar, in addition to the increased productions costs and high prices of raw materials.
