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.
The brokerage said it expects bottomline pressures to weigh on dividends until 2012.
On Friday, Nomura had cut its price target on shares of Mobinil to LE186 from LE200.