CAIRO: Orascom Construction Industries faces potential delays in project tendering in the immediate future due to the recent unrest in Egypt, UBS said, and cut its price target on the building and fertilizer giant’s stock.
Orascom Construction’s long-term gas supply contracts in Egypt and Algeria are also at risk of being reviewed, given the political changes in Egypt, and this could hurt the company’s fertilizer segment margins, UBS said.
The brokerage, however, expects the segment to benefit from strong pricing and new capacity.
The brokerage cut its price target on Orascom Construction stock to LE 264.20 from LE 291.40, but maintained its "neutral" rating.
Shares of the company closed at LE 248.86 on Wednesday.
