Cairo - Mubasher: Pharos Research has maintained its “Equal Weight” recommendation on the stock of Suez Canal Bank, with a fair value (FV) evaluation of EGP 18.50 per share.
“We continue to be concerned about the possibility of a capital increase, in order to boost the capital base in preparation for more aggressive growth targets,” Pharos said in a research note on Tuesday.
“The bank is delivering a weaker than average return on equity (ROE) of 16%, when peers are delivering close to 30%. The stock lacks clear catalysts in our view, other than the long term potential of higher profitability,” it added.
