CI Capital raises Egypt's Oriental Weavers

Reuters, Monday 9 Apr 2012

Cairo based investment bank upgrades Oriental Weavers stock projection driven by declines in raw material costs and hikes in demand

Egypt's Oriental Weavers, the world's biggest machine-woven carpet maker, may report earnings growth of 33 per cent in 2012 helped by easing raw material prices and increased demand, CI Capital said and upgraded the stock to "buy".

The company's profitability was hurt over the last year due to increased raw material costs, political unrest in Egypt and economic uncertainty in Europe.

However, easing polypropylene prices and strong growth in orders will drive the company's earnings growth in 2012, analyst Ingy El-Diwany said in a note.

The analyst has a price target of LE32.6 on the stock.

Shares of the Cairo-based company, which exports to 130 countries, closed at 19.87 Egyptian pounds on Sunday on the Egyptian stock exchange.

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