Cairo - Mubasher: Pharos Research has maintained its target price (TP) evaluation of the Arabian Food Industries’ (DOMTY) stock at EGP 13.18 per share with an “Overweight” recommendation.
“Domty is to large extent, still on track to meet our expectations for 2018, despite the margin contraction during the quarter and the decision not implement further price hikes in 2018,” the research firm said in a note on Tuesday.
The company is expected to miss its target gross margin of 26% and net margin of 9% for the fourth quarter of the year, and is expected to reach that target sometime in the first half of 2019; with a potential possibility of further contraction in margins following the expected energy subsidy cut.
