Naeem Ups Orascom Telecom’s FV To $4.45, Recommends ‘Buy’

In a recent research conducted by Naeem Holding,  the fair value of Orascom Telecom Holding (ORTE.CA) was raised from $3.2 to $3.65 for GDR and from EGP 3.9 to EGP 4.45 for the stock; with 14% upside potential. Naeem also recommends  a “Buy” for the stock.

According Vincenzo Nesci, the Chairman of Orascom Telecom Algeria (OTA, branded “Djezzy”), the Algerian government and VimpelCom (VIP) have formed a new company to operate the unit. The new company, Optimum Telecom Algerie, was formed on 2 December and is 51% owned by Algeria with the remaining stake held by VimpelCom.

“With this news, we believe events are shifting in favour of a sale of Djezzy. Accordingly, we adjust our valuation weighting to 75:25 in favour of a sale, implying a new target price of EGP4.45/share (USD3.65/GDR), up 14% (from our previous target price) and raising our call to BUY,” Naeem said.