Cairo – Mubasher: Pharos Research has raised their target fair value (FV) for Ghabbour Auto’s (GB Auto) stock to EGP 6.8 per share, with an ‘Overweight’ recommendation.

The target price of the stock may rise to EGP 7.93 per share if the government puts the new strategy of the automotive industry into effect, Pharos highlighted in a recent research note.  

GB Auto had previously said it was considering to float its arm GB Capital on the Egyptian Exchange (EGX).

The company’s capital amounts to EGP 960 million distributed over 1.09 billion at a par value of EGP 1 per share.

It is worth noting that GB Auto had incurred a loss of EGP 723.6 million in the full-year ended December 2017, against a net profit of EGP 989.8 million a year earlier.