HSBC said, in its annual report on Egypt, it lowered the target price for dairy and juice producer Juhayna Food Industries Co. to EGP 6.7 from EGP 10.2, downgrading its recommendation from ‘Neutral’ to ‘Reduce’.
The bank attributed the downgrade to the decline the company’s sales by 11% due to weak performance in yoghurt and juice segments, in addition to decline in consolidated profit margin for the nine-month period to 5.8 points.
HSBBC expected Juhayna to post profit rise to EGP 224 million in 2014, EGP 453 million in 2015 and EGP 618 million in 2016.
Photo Credit: Arabianeye-Reuters