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MubasherTrade raises Emaar Development’s PT to AED 7.03

MubasherTrade raises Emaar Development’s PT to AED 7.03
The UAE’s dirham is pegged to the dollar

Dubai – Mubasher: MubasherTrade Research set the price target (PT) of Emaar Development’s stock at AED 7.03, increasing it by around 16.6% from its price in the initial public offering (IPO), which brings the total value of the company’s shares to AED 28.1 billion.

Emaar Development’s projects are worth a total of AED 13.3 billion, while its jointly-owned projects reached AED 9 billion, MubasherTrade Research’s report showed, noting that the total value of the company’s undeveloped land hit AED 460.8 million, while its estimated net cash is AED 5.4 billion.

Risks

The report noted that the main risk facing the company is the rate of the US dollar, adding that as the UAE’s dirham is pegged to the dollar, then the UAE will remain an expensive destination as long as the dollar is strong.

The devaluation of India’s rupee also represents a potential risk for Emaar Development, as Indians are the main investors in the UAE, MubasherTrade Research revealed.

Other risks facing Emaar Development are uncertainty regarding oil prices, the value-added tax (VAT), competition, and the concentration of the company’s projects in Dubai, the research company concluded.