Stock now fairly valued after rally, remain Neutral
No further upside despite TP hike. We raise our TP by c40% to EGP0.42/share to reflect better pricing in 1Q17, paired with slightly stronger gross margins, leading to improvements in our long-term project cash flow assumptions. Our TP leaves no further upside following the 1M rally of 58%, warranting an unchanged Neutral rating. We primarily attribute this to triggers such as: i) strong 1Q17 results, ii) appointment of a new CEO, iii) stock’s lagging performance (+4% since floatation to beginning of May vs. EGX average of 47% and 31% for local peers) particularly with 200bps interest rate hike on 21 May shifting attention toward cash-rich balance sheets like Porto Group’s. But the next catalysts (Porto Heliopolis launch and dividends) are likely to be 2018 events, also supporting our Neutral call.
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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