The investment house sees a possible upside, but the company share price is “simply higher than its value”.
IBI Investment House Ltd. has downgraded Makhteshim Agan Industries Ltd. (TASE: MAIN) from “Neutral” to “Reduce” and cut the target price to NIS 28 - 15% less than its current market price. Analyst Yuval Zehira made the move after the company’s share has almost doubled from its low point in late 2005, including a 37% rise since January.
IBI’s recommendation for Makhteshim Agan is the opposite of other Israeli and foreign investment houses, all of whom are quite bullish about the company in view of the upswing in the global agriculture cycle, and therefore in the agrochemicals company’s business. Zehira says that although the improvement in the global agricultural industry has helped the company, and there is potential upside from its ongoing restructuring, as of now, the share is simply being traded above its real value.
Published by Globes [online], Israel business news - www.globes.co.il - on July 31, 2007
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