Tuesday, 31 May 2011 at 13:46, Reuters
Credit Suisse raised its share-price target on Orascom Construction Industries, and said it expects the construction company to benefit the most from the recent aid packages to Egypt that are likely to be used for infrastructure projects.
Pledges of support from the International Monetary Fund, World Bank, Western states and wealthy Gulf Arabs provided welcome respite for Egypt after tourists and investors fled in the wake of protests that ousted Hosni Mubarak on February 11.
OCI, which also has a big fertiliser business, is likely to benefit from strong fertiliser prices, said Credit Suisse. It estimates the business to contribute 66 per cent to Ebitda (earnings before interest, taxes, depreciation and amortization) in 2011, up from 51 per cent in 2010.
The brokerage raised its target price on Orascom Construction stock to 307.10 Egyptian pounds from 261 Egyptian pounds, and maintained its "outperform" rating.
Shares of the company closed at 272.44 Egyptian pounds on Monday.
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