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Credit Suisse ups Mobinil price target to L.E 230....
Released on - Thursday,05 November , 2009 -13:29 51
Cairo- Credit Suisse raised its price target on Egyptian Company for Mobile Services (EMOB) by 7 percent , and said it now assumes the company will pay out a much reduced dividend for this year and next as it looks to finance its licence fee payments in 2010.
The brokerage raised its target to 230 Egyptian pounds, but lowered its 2009 earnings forecast by about 2 percent, after the country's largest mobile operator by subscribers reported an 8.1 percent fall in third-quarter net profit earlier this week.
Credit Suisse said it assumes the company will pay out a dividend of 5 Egyptian pounds per share for this year and next, compared with its prior view of 11 Egyptian pounds and 13 Egyptian pounds, respectively.
"Confirmation of lower 2009-10 dividends would be a negative in the short term but should be temporary," said the brokerage, which kept its "neutral" rating on the stock.
Source: Reuters