EFG Hermes raised its target price for Dubai-based Emaar Properties and kept its "buy" recommendation on the stock on a higher forecast for 2008 revenue and net profit.
Emaar's long-term fair value is 20.4 dirhams ($5.56) per share, the Cairo-based investment bank said in a research note dated Dec. 15. EFG's previous target price was 19.7 dirhams. Emaar closed on Thursday at 13.65 dirhams.
EFG raised its 2008 revenue estimate to 28.2 billion dirhams from 27.2 billion. Its full-year 2007 estimate is 17.9 billion dirhams, it said.
The investment bank cut its 2007 net profit forecast to 6.4 billion dirhams from 7.2 billion dirhams on lower land sales, according to the note.
It increased its 2008 profit forecast 10 billion dirhams from 9.8 billion dirhams, saying it expected Emaar's affiliates to report stronger earnings.