MubasherTrade Research maintained their Buy/Moderate Risk rating on Aramex with the same price target (PT) of AED 4.79 per share.
Aramex pursues an expansion strategy by expanding in fast-growing business lines like e-commerce, and adding more weight to high-growth regions especially in Asia and the Pacific, MubasherTrade said in a recent report.
Over its history, the MENA region has been the main contributor to Aramex's revenues. With expansions targeting the fast-growing Asian markets, the report added.
The research firm believes the slowing MENA region's share in revenues will continue to decline, protecting Aramex from the prevailing slowdown in the GCC.
Meanwhile, shifting the sales mix towards the express business would protect the company from the slowing freight forward business due to high-competition and low oil prices and would gradually improve its operating margins, the report indicated.
Aramex recently disclosed its financial results for Q3 2016, posting 3% year-on-year decline in earnings to AED 72.2 million, while revenues grew by 15% to AED 1.05 billion.
