Updating our stock picks, we are adding Elsewedy Electric (SWDY) to our EGX Model Portfolio (EGX-MP), having removed Orascom Investment Holding (OIH) as published on 7 April 2019, generating a 19% return since 20 January 2019.

Since SWDY’s new awards in Q1 2019 are still within our forecasts for 2019 (c.43% of 2019 figures).

we maintain our 12-month price target (12M PT) of EGP20.6/share, implying an upside potential 26% and upgrade our rating on SWDY from Neutral to Overweight and add it to our EGX-MP as.

We believe the recent pull-back in the stock price has created a sensible entry point.

For more details, please read the full report below.