Cairo - Mubasher: Renaissance Capital increased its target price for EFG Hermes (EFG) to EGP26.8/share and maintained its “market perform rating”.
Renaissance also updated its earnings estimates for EFG Hermes to EGP16.0/$ for FY17/18 on the back of a better macro outlook for Egypt.
“EFG’s strong industry positioning and franchise are offset by what we view as its full valuation, given recent share-price performance, and by execution risks on potential acquisitions in frontier markets," said Renaissance.
Renaissance also expects EFG’s brokerage and investment banking (IB) business arms to do well in the medium term, on higher trading volumes and renewed appetite for IPOs and M&A in Egypt, but remain cautious on EFG’s expansion strategy.
Renaissance Capital is a leading investment bank focused on emerging markets.
