No short-term earnings recovery in sight

– Inderes
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Afarak reported Q4’19 results on Friday, which came in line with our revised expectations as the company gave a profit warning earlier. We expect earnings to stay subdued in the coming quarters due to weak market conditions. We abstain from giving a target price or a recommendation for Afarak Group due to the dispute between major shareholders. However, in our view the current valuation in relation to the company’s earnings ability is clearly elevated.
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