​ Re-iterate Buy, but lower our TP by 2.0% to EUR 5.8/share (implying a 25.5% upside) after H1 17A results.  Solid organic growth, 20bps y/y improvement in EBIT margin in H1 17A and 12.8%/10.2% DHEPS growth in FY 18/19e, support our Buy case.  Benefits from acquisition likely to take longer to materialise. We take a more conservative view on Mattress Firm (MFRM) margin recovery due to supply disruption and store rebranding; and lower MFRM EBIT margin by 130bps/170bps in FY 17e/FY 18e.  Steinhoff Retail Africa (SRA) listing is still the key catalyst for SNH in H2 17e, but further one-off charges related to integration of acquired business remains a risk.
Established in 2007, Arqaam Capital is a specialist emerging markets investment bank, bringing regional and international product offerings to the emerging markets. Arqaam Capital combines international best practice with expertise in the markets in which we operate. Our primary role is to provide financial intermediation and create investment opportunities for frontier and emerging markets investors looking to invest in their own markets and abroad, as well as international investors seeking opportunities in target frontier and emerging markets. Arqaam Capital is headquartered in the Dubai International Financial Centre (DIFC), with additional offices in Libya, Lebanon, Egypt, and South Africa.
Arqaam Capital's research platform provides the largest coverage footprint of MENA equities and one of the largest on the African continent with a total of 300 stocks under coverage. Arqaam Capital is ranked as one of the leading research providers in the region - a reflection of its broad coverage universe, its in-depth and high quality research, as well the compelling investment ideas that the team generates. The analysts closely analyze their sectors and issue in-depth company and sector research while the strategy team connects the micro with the macro, focusing on index analysis, macroeconomics and strategy research.
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