HSBC upgraded Olympic Group to "overweight" from "neutral," citing an attractive valuation, and said the Egyptian appliance maker’s capacity expansion plans are on track.
Capacity expansions related to Olympic’s agreement with Sweden’s Electrolux and potential original equipment manufacturers’ sales are progressing as planned, HSBC said.
Olympic Group, which specializes in making automatic washing machines, refrigerators, ovens, electric water heaters and other home appliances, has a partnership with Electrolux.
Last month, Olympic posted a 10.8 percent rise in first half net profit to LE 89.2 million.
"Second-quarter sales volume miss is product specific, while fundamentals for broader market remain intact," the brokerage said.
HSBC cut its price target on Olympic shares to LE 33 from LE 36.30.
