Cairo – Mubasher: Pharos Research has raised their fair value (FV) for Abu Dhabi Islamic Bank – Egypt (ADIB) to EGP 19.50 per share, with an Overweight recommendation, according to a recent report on Sunday.
“Despite ADIB UAE unwillingness to raise its stake in ADIB Egypt on the short term, we [Pharos] updated ADIB - Egypt FV to EGP 19.50 to account for the potential dilution effect and other several positive developments,” the research company added.
Furthermore, lending at a 5-year compound annual growth rate (CAGR) is projected to surge by 17% over the forecast horizon of 2018 to 2022, while deposits to accumulate at a CAGR of 12%, the report highlighted.
Pharos expected the bank’s effective tax rate to reach 30% in 2018, which will positively impact ADIB – Egypt’s profitability in the first quarter of 2018.
ADIB Egypt had previously posted an 84% year-on-year jump in profits for the nine months ended September 2017
By 2:22 pm Cairo time, ADIB Egypt’s stock edged up 0.79% to EGP 16.8 at a turnover of EGP 5 million.