Cairo – Mubasher: Renaissance Capital, a leading research firm, has started covering Domty’s stock performance, according to a report published on Wednesday.
The firm placed a ‘Hold’ recommendation on the stock, setting the target price at EGP 8.8 a share.
The firm indicated that the growth of cheese category, which makes up 85% of revenues, will slow down due to high rates of consumption in Egypt.
Moreover, volume and price pressures are to create highly competitive atmosphere for juice category, Renaissance said, adding “the new strategy of trying to bring distribution in-house and entering the snack foods category could put pressure on margins”
In the first quarter of 2016, Domty’s earnings rose 7.1% year-over-year to EGP 24.15 million.
By 1:00am Cairo time, the stock quote was 0.67% higher to EGP 8.97.
