LONG TERM BUY
We recommend a LONG TERM BUY on EABL. The counter is trading at a KES 158.00 at a P/E multiple of 30.6x, with a dividend yield of 1.9% and ROE of 46.6%. We recommend investors with a long term view to take buying positions in the counter.
Given the business trajectory over the years and the group’s agile adaptability to the current challenging operating environment, we are confident in the group’s robust business strategy to return to strong growth in the medium term. We therefore expect a bounce back in performance, albeit gradually, towards pre-Covid levels. We remain confident in performance going forward given improved performance in 1H2021 compared to 2H2020 (following the ease of restrictions).