Attractive entry ahead of monetary easing in Egypt

Maintain Overweight on TP of EGP27.5/share. We upgrade our valuation by 37% primarily on incorporating: higher FX assumptions (+10% to EGP16/USD in 2018) and AUMs (post Frontier Investment Management Partners’ [FIM] acquisition), as well as rolling over our DCF. EFG should be among the main beneficiaries from Egypt’s expected shift to an expansionary monetary policy due to its strong foothold in the local market (c50% of total IB fees in 1H17). Regional AUMs’ expansion is also a key value driver...