CAIRO: Investment bank EFG-Hermes cut its long-term recommendation for Arabia Cotton Ginning to accumulate from buy on Wednesday, saying a share price rally had left the stock overvalued. EFG said it had also reduced its short-term recommendation to neutral from buy . It said its estimated fair value for the stock, often one of the most heavily traded shares, was LE 12.70 ($2.21), below Tuesday s close of LE 13.83. EFG said Arabia Cotton Ginning s share price had rallied 66 percent on buying interest from Arab and Egyptian retail investors since it initiated coverage on July 1, significantly outperforming the benchmark Hermes index. The index rose 22 percent in the same period. Reuters
EFG downgrades Arabia Cotton Ginning
