Raise target price to AED4.7/share on express segment growth; reiterate Overweight
Diversified growth warrants higher multiples. Aramex trades at 13.6x 2017e P/E, 16% below the courier peer average, which we believe is unjustified in light of higher growth prospects (2016-18 EBITDA CAGR of 16% vs. 9% for the sector). We upped our TP by 15% to reflect higher revenue growth estimates at the higher-margin express and logistics segments, although we cut the domestic express gross profit margin to 50% (from 55%) due to the consolidation of Fastway Australia (Feb-16). Our new TP implies 24% upside and we therefore reiterate our Overweight rating.
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.
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