SAUD
Cairo - Mubasher: Pharos Research has maintained its fair value (FV) evaluation of Al Baraka Bank at EGP 16.50 per share, with an Overweight recommendation, according to a recent report.
The research firm said that it is basing its valuation on a set of key assumptions, that underpin the growth potential for the bank, led by the forecasted improvement in corporate financing momentum, as the investment climate in Egypt revives starting 2018, to record a compound annual growth rate (CAGR) of 21% between 2017-2021, with the faster pickup in non-funded income fueled by the potential pickup in financing activity.
"Despite the 60% rally since flotation, we still believe the stock offers deep value with a forecasted [return on equity] (ROE) at 29.8% for 2017." "The stock’s liquidity has improved," the report indicated.