Pharos Research has maintained their ‘Overweight’ recommendation on Juhayna Food Industries’ stock at a target price (TP) of EGP 14.42 per share.
The Egyptian dairy products firm is on track to meet Pharos’ expectations for 2018, the research firm said in a research note on Thursday.
The recent energy subsidy cuts could cause a temporary slowdown in Juhayna’s volume recovery as a form of downside risk, Pharos highlighted.
“We believe that any negative impact on purchasing power resulting from the energy subsidy cuts would be temporary and would not result in a reversal of the recovery trend,” it added.
The company noted that the third quarter is “seasonally stronger” for coinciding with the summer and a glimpse of the school year.
on Wednesday, Juhayna reported a 180.3% year-on-year hike in its consolidated profits for the first half of 2018, recording EGP 239.8 million from EGP 85.5 million, including minority shareholders’ rights.
Juhayna previously posted a 38.5% year-on-year rise in consolidated profits for the first quarter of 2018, recording a net profit of EGP 80.72 million from EGP 58.25 million, including minority shareholders’ rights.