Citadel Capital is 'unique in CEEMEA ' a strong play on infrastructure in the Middle East and Africa,' says the global research house, setting a price target of EGP 12.40 per share
Leading global research house Deutsche Bank (DB Research) has become the second major global research house to initiate coverage of Citadel Capital shares in as many months with a “Buy” rating and a target price of EGP 12.40 per share, suggesting a 53% upside potential from current levels.
“Deutsche Bank notes that Citadel Capital has a ‘remarkable’ track record, pointing to our ability to add value and source deals — all supported by ‘top notch’ processes and an outstanding management team,” said Amr El-Kadi, Head of Investor Relations at the leading private equity firm in the Middle East and Africa with US$ 8.6 billion in investments under control.
The report further notes that Citadel Capital provides “concentrated thematic exposure to economic dynamics that we believe are critical to Egypt and its place in the region. Citadel Capital in this sense is unique: the stock provides clear exposure to infrastructure, demographics, Africa, commodities, energy deregulation and to the expected repeal over time of fuel subsidies.”
“Significantly,” added El-Kadi, “the Deutsche Bank report notes that we are a hybrid asset manager and the only listed firm of our kind in MENA. DB Research analysts believe investors are currently not factoring in a value per share for the asset management business, which means effectively that this is a free option to be realized on top of our portfolio net asset value (PNAV), which estimates only the value of our current principal investments in our own platforms.”
The Deutsche Bank report, titled “Egyptian Financial Services: The Rise of the Retailers,” was released on 20 December 2010 and initiates coverage of four major domestic financial stocks, designating Citadel Capital and one other firm as “Buy.”
In addition to Deutsche Bank, Citadel Capital, an EGX 30 company, is covered by Crédit Suisse, HC Securities and Investment, Pharos Holding and Pioneers Holding.
Citadel Capital (CCAP.CA on the Egyptian Stock Exchange) is the leading private equity firm in the Middle East and Africa. Citadel Capital focuses on building regional platforms in select industries through acquisitions, turnarounds, and greenfields executed via Opportunity-Specific Funds. The firm’s 19 OSFs now control Platform Companies with investments worth more than US$ 8.6 billion in 14 countries spanning 15 industries, including mining, cement, transportation, food and energy. Since 2004, Citadel Capital has generated more than US$ 2.5 billion in cash returns to its co-investors and shareholders (on investments of US$ 650 million), more than any other private equity firm in the region. Citadel Capital is the largest private equity firm in Africa by PE assets under management (2005-2010, as ranked by Private Equity International). For more information, please visit www.citadelcapital.com.
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