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MubasherTrade upgrades AMOC rating to ‘Buy’

MubasherTrade upgrades AMOC rating to ‘Buy’
Photo Credit: Arabianeye-Reuters
AMOC
AMOC
-0.40% 7.49 -0.03

Cairo - Mubasher: MubasherTrade Research has raised their 12-month price target (PT) for Alexandria Mineral Oils Company (AMOC) by 46% from EGP 9.04 to 13.18 per share, and upgraded their rating from Sell/Moderate Risk to Buy/Moderate Risk.

Corporate actions undertaken are set to enhance corporate governance and the stock liquidity, the report indicated, adding that the company is in the process of issuing global depository receipts (GDRs) to be listed on London Stock Exchange (LSE) once local regulatory approvals are obtained.

The company has hired Bank of New York to act as the global custodian for the GDR issue as well as the law firm Baker McKinsey to act at the company's legal counsel throughout the process.

MubasherTrade expects these actions to enhance the stock's liquidity, making it attractive to foreign investors in particular.

This comes considering all changes to the estimates, such as the new business line and improved operating margins, the report noted.