Mubasher: Ubhar Capital on Thursday recommended ‘Accumulate’ on Mezzan Holding Co’s stock, listed on the Boursa Kuwait, and raised its price target (PT) to 820 fils, up 15.7% from its closing at 709 fils on Wednesday.

This was mainly driven by Mezzan Holding’s support for Kuwait's consumer sector through overseas expansions, Ubhar said in a research note.

Mezzan is likely to generate further earnings after the completion of the various projects it is currently working on, the research firm said, noting that the Kuwait consumer products firm was forecast to see lower cost whilst achieving the highest level of efficiency.

Boursa Kuwait-listed Mezzan is projected to achieve a compound annual growth rate (CAGR) of 4.5% between 2018 and 2021 to record KWD 243.9 million in revenues by 2021 from KWD 204.5 million, the report highlighted.

The Kuwaiti firm is forecast to begin its expansion plans in the UAE, Qatar, and Saudi Arabia this year, the report indicated.

Ubhar Capital also expected Mezzan to report a net profit of KWD 13.7 million in 2018 up from KWD 12.9 million last year.

Mezzan's net income CAGR is projected to stand at around 8.8% during the 2018-2021 period, the report said.