As part of Blominvest Bank’s series of local and regional equity research coverage, the investment bank has initiated coverage on HOLCIM Liban (HOLC) with a HOLD recommendation and a fair value of USD 17.49 per share. This presents a 6.00% upside over its share price of $16.50 on December 06. While HOLCIM’s P/E ratio at 10.5 undervalues the company when compared to a P/E of 12.1 for its regional peers, the study shows that the stock price is pressured by the underlying political tension in the country and its relative reliance on a maturing real estate market along with having only 18% of outstanding shares tradable on the Beirut Stock Exchange. Blominvest highlights HOLCIM’s strong financial position backed by satisfactory liquidity levels and the fact that it has been distributing most of its earnings to shareholders over the past six years. Worth noting that HOLCIM is a major cement producer in Lebanon with a production capacity of 2.2 million tons and a market share estimated around 43%.
Click below for the full initiation report:
Holcim Liban – Equity Research