AlembicHC slashed its price target on shares of Mobinil by 21 per cent to LE103 on the back of lower margins and higher leverage, non-cash charges and taxes.

"We expect 2011 net profit to drop 80 per cent," the brokerage, which backed its underweight rating, said.

Last week, the Egyptian mobile phone company reported a second-quarter net loss, hurt by political turmoil following the toppling of President Hosni Mubarak, which hit tourism and other businesses.

The brokerage wrote in a note that it expects Mobinil shares to be under pressure till after it declares its third-quarter results, which could be hit hardest because of the boycott.

Some are calling for a boycott of Mobinil over a row about a cartoon posted by Naguib Sawiris, chairman of Orascom Telecom, which they deem to be offensive to Islam.

Orascom jointly owns Mobinil with France Telecom.