EFG Hermes Raises Target Price for Talaat Moustafa Group (TMG) to EGP 130, Citing Strong Growth Potential
Cairo, Egypt – Investment bank EFG Hermes has reaffirmed its “buy” rating for Talaat Moustafa Group Holding (TMG), considerably increasing its price target to EGP 130 (approximately $2.71 USD) from a previous EGP 120. The upgrade comes as EFG Hermes identifies TMG as its top pick within the Egyptian market, fueled by robust performance and ambitious expansion plans.
A newly released comprehensive report highlights TMG’s strong showing across all sectors in the first half of 2025, a trend analysts expect to continue, particularly with anticipated strong sales from the north coast’s SouthMed project in the third quarter.
Despite this positive momentum, EFG Hermes notes that TMG’s stock has yet to fully reflect the company’s operational strength and recent positive developments. This includes its strategic expansion into new markets like Iraq and Oman.
Key Catalysts for Growth:
The investment bank pinpointed several factors poised to drive TMG’s stock performance in the coming months:
Oman Project Launch: The initiation of a new project in Oman is expected to be a significant positive catalyst.
Saudi Arabia’s Banan Project: Increased sales within the Banan project in Saudi Arabia, particularly following the implementation of a new foreign ownership law in January 2026, are anticipated to boost revenue.
Potential Ras El Hekma Participation: Any proclamation regarding TMG’s involvement in the Ras El hekma project would further accelerate positive momentum.
Massive Development Pipeline:
EFG Hermes estimates TMG’s total development sales portfolio at a substantial EGP 3.9 trillion ($78 billion), slated for sale over a 14-year period extending to 2038.Projected sales figures are notable:
2025: EGP 458 billion (EGP 210 billion already achieved in the first half)
2026: EGP 505 billion
2027: EGP 523 billion
Thes projections do not include the forthcoming Sharm Bay project, expected to add another EGP 120 billion to the portfolio, nor do they factor in contributions from projects in Oman and Iraq.
International Expansion & Revenue Growth:
The report emphasizes that TMG’s growing international footprint will bolster its ability to generate crucial foreign currency revenue. EFG Hermes projects a significant 56% year-on-year increase in TMG’s development revenues, reaching EGP 41.2 billion in 2026,followed by a further 35% jump in 2027 as unit deliveries are recognized. Revenue recognition from the Banan project in Saudi Arabia is expected to begin in 2028, promising a substantial leap in overall development revenue.
Strong Fundamentals:
underpinning this optimistic outlook are TMG’s solid fundamentals, including a contracted sales backlog of EGP 364 billion (to be recognized over five years) and a vast land bank spanning 125.9 million square meters.EFG Hermes concludes that TMG’s expansion into the Saudi market, coupled with a favorable operating surroundings, positions the company for continued sales growth and makes its stock a compelling investment opportunity within both the Egyptian and regional markets.
Keywords: Talaat Moustafa Group, TMG, EFG Hermes, Egypt Stock market, Real Estate Investment,
