Investment bank EFG Hermes has reiterated its "buy" recommendation for the shares of Talaat Moustafa Group Holding (TMG), raising its target price for the stock to EGP 130 ($2.71) from a previous EGP 120. In a comprehensive report, EFG Hermes stated that TMG remains its top pick in the Egyptian market, supported by strong performance across all sectors in the first half of 2025, a trend it expects to continue, especially with anticipated strong sales in its North Coast project (SouthMed) during the third quarter. The report noted that the stock's performance since the beginning of the year has not yet reflected the group's strong operational performance or recent positive news about its expansion plans in Egypt and abroad, including entering the markets of Iraq and Oman. EFG Hermes identified the launch of a project in Oman and increased sales in the Banan project in Saudi Arabia—particularly after a foreign ownership law comes into effect in January 2026—as key positive catalysts for the stock in the coming months. Any announcement of potential participation in the Ras El Hekma project would add further positive momentum, the report said. The investment bank estimated TMG's total development sales portfolio at about EGP 3.9trn ($78bn), to be sold over a 14-year period until 2038. It projected sales of about EGP 458bn in 2025 (of which EGP 210bn were in the first half), EGP 505bn in 2026, and EGP 523bn in 2027. These estimates do not yet include the anticipated Sharm Bay project, which the company expects to add about EGP 120bn to the portfolio, or the projects in Oman and Iraq. EFG Hermes noted that the group's international presence will enhance its ability to generate foreign currency revenues, which is a major positive factor. The report also projected that TMG's development revenues would rise by 56% year-on-year to reach EGP 41.2bn in 2026, with another 35% jump in 2027 as unit deliveries are recognised. Revenue from the Banan project in Saudi Arabia is expected to be recognised starting in 2028, leading to a significant leap in development revenues. EFG Hermes highlighted several of TMG's strengths, including a contracted sales backlog of EGP 364bn as of June 2025, which will be recognised over five years, as well as a massive land bank of 125.9m square metres. The report concluded that positive catalysts, led by the expansion into the Saudi market in partnership with leading institutions and an operating environment that exceeds expectations, will support the group's sales and future growth, making its stock a prominent investment option in the Egyptian and regional markets.
