Citigroup sets GB Auto's target price at EGP 39, recommends 'Buy'

Citigroup defined the price estimate of GB Auto at EGP 39, with upside potential of 30.5% to its market value of EGP 29.88 on August 16th. It also placed ‘Buy’ recommendation on the stock.

The car assembler’s Q2-11 consolidated financial results reflected a 6.8% increase Y-o-Y in revenue to EGP 1.857 billion. Meanwhile, bottom line hit EGP 50.5 million, dropping 35% Y-o-Y from EGP 77.7 million and compared with EGP 7.7 million in Q1-11.

Revenue for the first half of FY11 grew 2.9% to EGP 3.15 billion, compared with EGP 3 billion in the year-ago period. Meanwhile, net earnings fell 60% year-over-year from EGP 146.4 million to EGP 58.2 million.