Yesterday, our industrials analyst Dina Abdelbadie published a Core Coverage Report on Orascom Construction [ORAS]. Having valued ORAS using a five-year two-stage discounted cash flow (DCF) model, she reached a fair value of EGP126/share and a 12-month price target of EGP146/share (+65%). Hence, ORAS is rated Overweight / Medium Risk. Dina is positive on ORAS based on its (1) strong brand name with a quality backlog tilted towards Egypt where she sees continued growth, (2) smart management, (3) strong Q4 2020 performance with an expected recovery for ORAS’s 50%-owned BESIX, and (4) management target to increase recurring income to reduce earnings volatility, especially at times of slowing construction activities. For further details, please check out our Core Coverage Report.
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