Cairo – Mubasher: Renaissance Capital set its target price for Egypt’s cigarette maker Eastern Company (Eastern Tobacco) at EGP 302 per share, with buy recommendation.
The new tax law amendments in respect to cigarette will allow more flexibility in prices, noted the research house adding that it expects the ex-factory prices to increase by 7% through 2018 to 2020.
Earlier, the Ministry of finance stated the increase in cigarette prices following the implementation of the Added Value Tax law.
The increase in cigarette prices is expected to rise the Egyptian government’s earnings from Eastern company to EGP 42 billion ($473 million) per year.
