Growth challenges ahead; initiate at Underweight
Expensive on our earnings estimate. We initiate coverage on Saudi car rental company Budget, with an Underweight rating. Budget trades on a 2017e P/E of 12.9x; 2.1% above industry peers, despite a 2016-18e EPS CAGR of 1.0% vs. 6.7% for peers. We do not expect Budget’s plans to up exposure to lower-priced rentals via ‘Payless’ to offset the hit on its main segments, and in our view, the share price reflects unrealistic growth in light of deteriorated Saudi fundamentals.
United International Transportation is engaged in the leasing and rental of vehicles. Co. operates under the brand name "Budget Rent a Car". Co. leases and rents passenger cars and trucks, commercial vehicles and specialized vehicles.
CI Capital is a diversified financial services group and Egypt’s leading provider of leasing, microfinance, and investment banking products and services.
Through its headquarters in Cairo and presence in New York and Dubai, CI Capital offers a wide range of financial solutions to a diversified client base that include global and regional institutions and family offices, large corporates, SMEs, and high net worth and individual investors.
CI Capital leverages its full-fledged investment banking platform to provide market leading capital raising and M&A advisory, asset management, securities brokerage, custody and research. Through its subsidiary Corplease, CI Capital offers comprehensive leasing solutions, including finance and operating leases, and sale and leaseback, serving a wide range of corporate clients and SMEs. In addition, CI Capital offers microfinance lending through Egypt’s first licensed MFI, Reefy.
The Group has over 1,700 employees, led by a team of professionals who are among the most experienced in the industry, with complementary backgrounds and skill sets and a deep understanding of local market dynamics.
CI Capital has been recognized as the “Best Investment Bank in Egypt” by EMEA Finance for four years running from 2013-2016, and by Global Finance in 2014 and 2015.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.