Cairo – Mubasher: Pharos Research has affirmed their ‘Overweight’ recommendation for Orascom Development Egypt’s stock based on a fair value (FV) of EGP 13 per share.

The recommendation was mainly driven by the value of El Gouna’s residual land, as well as other positive catalysts, Pharos added in a research note on Tuesday.

These catalysts include the continuous fruitful turnaround of tourism to Egypt, new launches in El Gouna, the launch of the West Cairo project, potential expansion in the North Coast, and the further reduction of debt, the research firm highlighted.

On Tuesday, Orascom Development reported a 9% year-on-year increase in consolidated profits for the first quarter of 2018, recording EGP 83.08 million from EGP 75.9 million.

Revenues surged to EGP 654.9 million in the three-month period ended last March, compared to EGP 493.8 million in Q1-17.

Meanwhile, standalone losses grew to EGP 45.9 million in Q1-18, versus losses of EGP 42.57 million in the prior-year period.