+ A
A -
Satyendra Pathak
Doha
QNB Financial Services (QNBFS) has announced that it maintains ‘outperform’ rating on Investment Holding Group (IGRD) as the company has proved to be a turnaround story this year.
In a recent company report, QNBFS said, “We remain outperform and tweak our estimates after the third quarter results in 2019. IGRD’s net income came in above our estimate for the third quarter primarily due to lower minority interest. On the other hand, the company started the year with a strong addition to its order book. We continue to like the company as a turnaround story as well as the new management’s dedication in cost cutting and its efforts on expanding the trading segment’s product range with high margin products.”
“We also maintain our target price at QR0.75. Since our initiation on April 11, 2019 IGRD shares recorded a total return of 2.8 percent including DPS of QR0.25 paid on April 15,” it said.
Due to some delays in project initiations in 2019, the report said, it has reduced its revenue and earnings per share (EPS) estimates for 2019 but increased for 2020.
“We expect a higher portion of the delayed projects to be completed in 2020. We raise our 2020 EPS estimate to QR0.071, an increase of 9.3 percent year-on-year from our prior estimate of QR0.057,” it said.
Further expansion in the order book, new products and potential buyouts of minority stakes at other subsidiaries will add value to the stock in the years to come, the report said.
Doha
QNB Financial Services (QNBFS) has announced that it maintains ‘outperform’ rating on Investment Holding Group (IGRD) as the company has proved to be a turnaround story this year.
In a recent company report, QNBFS said, “We remain outperform and tweak our estimates after the third quarter results in 2019. IGRD’s net income came in above our estimate for the third quarter primarily due to lower minority interest. On the other hand, the company started the year with a strong addition to its order book. We continue to like the company as a turnaround story as well as the new management’s dedication in cost cutting and its efforts on expanding the trading segment’s product range with high margin products.”
“We also maintain our target price at QR0.75. Since our initiation on April 11, 2019 IGRD shares recorded a total return of 2.8 percent including DPS of QR0.25 paid on April 15,” it said.
Due to some delays in project initiations in 2019, the report said, it has reduced its revenue and earnings per share (EPS) estimates for 2019 but increased for 2020.
“We expect a higher portion of the delayed projects to be completed in 2020. We raise our 2020 EPS estimate to QR0.071, an increase of 9.3 percent year-on-year from our prior estimate of QR0.057,” it said.
Further expansion in the order book, new products and potential buyouts of minority stakes at other subsidiaries will add value to the stock in the years to come, the report said.
