Cairo - Mubasher: Pharos set the fair value (FV) of Sidi Kerir Petrochemicals at EGP 24.10, which implies a 20% upside, with an “Overweight” rating, according to a recent report.

This comes despite major headwinds represented, namely the significant increase in production costs, the pressure on polyethylene prices over our forecast horizon, lower utilization rates due to feedstock shortages in the short term, and the overblown benefits of currency flotation

Higher oil and PE prices, as well as EGP depreciation, provide a solid support for the financial outlook, the report indicated

“Comparative multiples are very assuring, especially in light of the stock’s recent addition to the EGX30 Index; which should unlock the potential upside, once liquidity concerns are alleviated,” added the report.