Tuesday, Sep 20, 2011
0711 GMT [Zawya Dow Jones]--Credit Suisse expects defensive stocks to outperform the broader Egyptian market and sees Telecom Egypt as among the most defensive given its ungeared balance sheet, strong free cash flow generation, modest valuation and room to surprise positively on dividends. Maintains an outperform rating on TE; however trims its target price to EGP16 versus EGP16.50. Notes 2Q results revealed a slower recovery in Egyptian mobile than it had hoped for as sector specific competition issues continue to compound the effects of a subdued economy suffering from political uncertainty. "We think Mobinil's valuation looks potentially interesting after recent share price underperformance but it does not yet stand out in a sector context. We lower our TP from EGP120 to EGP110."
(nikhil.lohade@dowjones.com)
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(END) Dow Jones Newswires
20-09-11 0712GMT
