Blom Egypt Sets Ezz Steel Price Target At EGP 10.27/Share, Hold Rating

Blom Egypt set, in a recent study, Ezz Steel (ESRS.CA) target price at EGP 10.27 per share with Hold recommendation after accounting for the risks surrounding the stock.

Ezz Steel reported a 4.8 % rise in revenues to EGP 14.844 million during the first nine months of 2012, attributed to a 4 % rise in long products sales to 2.8 million tons.

Local sales attributed to around 87 % of the Egyptian steel maker’s top line for the year, while the remaining 13 % was mostly attributed to export markets led by Europe and the MENA region.

Blom stated that, Ezz Steel has endured a challenging quarter but we expect it to report a profit during the fourth quarter, benefiting from the devaluation of Egyptian pound in its international sales.