MENA Chemicals: Street expectations are too demanding
Report by Alembic Global Advisors
During 2Q24, the average MENA petrochemical company’s share price declined 4.9%, outperforming the broader market by 1.2%. However, Hassan Ahmed’s analysis suggests that the Street’s estimates for Q2 are too demanding for the majority of these stocks. He expects tepid earnings growth Q/Q for most names and is meaningfully below consensus for Advanced Petrochemical Company and Industries Qatar. Similarly, he believes consensus estimates for FY24 are too optimistic. As a result, he lowers his 2024 earnings estimates for all seven MENA names that he covers and lowers his 2025 EPS estimates for six of the seven stocks.