Hermes Recommends “Buy” On Elsewedy

EFG-Hermes issued a report on Elsewedy Electric, defining the stock’s fair value at EGP 30, compared to its market price of EGP 25.4, and recommending a “Buy”.

Elsewedy reported net profit of EGP32 million in Q2, compared to EGP98 million recorded in Q1, and estimates of EGP125 million. Hermes stated, “Our bottom-line forecast for the full year is at risk; but we believe our clean earnings forecast remains achievable, provided that turnkey deliveries recover in 2H2012 as per management’s previous guidance, and cables remain resilient”.

Mubasher