Cairo - Mubasher: Pharos Research downgraded their fair value (FV) for Arabian Cement Company (ACC) to EGP 8.58 per share, according to a report issued on Monday.
The research firm cautiously assigned a Hold recommendation, the report indicated.
ACC is one of the most efficient listed cement producers and is trading below fair value and regional emerging market peers, but it is expected to face strong challenges, stated the report.
This comes as ACC plans new capacity expansion plans, and with weaker Egyptian pound against the US dollar, this could lead to higher debt repayments and higher energy costs, as well as inability to offload excess supply due to inability to access regional markets, the report added.
