Cairo – Mubasher: Prime Research raised the fair value (FV) of Ezz Steel to EGP 20.89, assign a ‘Buy’ recommendation on the stock, according to a report published on Thursday.
Accordingly, Prime altered its estimations published in a research note on 4 October 2016, in which the fair value was lowered from EGP 11.7 to 9.2 per share, with expected growth of 30%, placing a ‘Buy’ rating.
The stock quote is likely to increase by 60%, said the research firm, advising traders to build positions in the long run.
Raising the fair value was driven by a number of factors including the local currency flotation, the liberalization of steel prices, and the improvement of gas supplies, the research firm revealed.
As the financial performance was polished up, year-on-year losses narrowed in the third quarter of 2016, the firm added.
The company announced on Thursday that Q3 consolidated losses shrank by 57.7% year-on-year to EGP 127.9 million from EGP 302.7 million, according to a bourse statement.
Over the first nine months, the steel supplier lost EGP 744.2 million, higher 0.5% year-on-year from EGP 740.3 million.
During the first six months, consolidated losses reached EGP 616.3 million, higher 40.8% year-on-year from EGP 437.6 million.
The stock quote rose by 7.3% to EGP 13.5 on Thursday after 7.3 million shares were traded at EGP 98.5 million.
