Mubasher Research sets Emaar Malls' PT at AED 2.79/shr

Mubasher: Mubasher Trade Research maintained Emaar Malls Group's price target (PT) of AED 2.79 per share with "Sell/Low Risk" rating, according to its commentary on the second quarter's financial results.

The research agency observed that Emaar's net earnings grew 11.2% year-over-year to AED 458 million as revenues annually stood 8.9% higher to AED 785 million and finance cost declined 20% year-over-year to AED 48 million.

Meanwhile, net profits on a quarterly basis fell 13% quarter-on-quarter from AED 529 million as a result of a 5.8% quarter-over-quarter drip in revenues from AED 833 million.

"We believe that revenues growth was mainly driven by higher rental rate of renewable contracts. Going forward, we believe that the current expansions of 845,000 sq ft and "under-evaluation" expansion plan of 865,000 sq ft will stimulate future growth", the research firm said.

According to the report, EMG is expected to support its retail portfolio in Dubai by establishing a new retail project in "Dubai Creek Harbour".

Moreover, the price target may increase by AED 0.30 per share after considering the expansions of "TDM Boulevard", "TDM Zabeel", and "Al Reem" whose total gross leasable area (GLA) is 865,000 square foot.