Investment⁢ bank EFG Hermes has reiterated its “buy”‍ recommendation for the‍ shares of⁢ Talaat ⁣Moustafa Group Holding⁣ (TMG), raising its ⁤target price for the stock to EGP 130 (approximately $2.71 USD based on September 4, 2024 exchange rates) from a previous ‍EGP 120. The upgrade reflects ⁤strong growth prospects ‍driven by expansion⁣ into the Saudi Arabian market and a substantial development backlog.

Revenue Growth Projections

EFG Hermes projects TMG’s development revenues to rise by 56% year-on-year to reach EGP 41.2 ‍billion ‍in 2026. Further growth ⁣is anticipated, with a 35% increase in 2027 as unit ‍deliveries from existing projects are recognized.A notable revenue boost is expected from 2028 onwards with the ⁣recognition of revenue from ‍the Banana project in Saudi Arabia.

The Banana project, a large-scale development in⁢ Saudi Arabia, represents⁤ a key component of TMG’s expansion strategy. Details about the project’s scope and investment value can be found on various news sources covering Saudi real estate developments.⁣ Arab⁢ News reported on the project’s launch in January 2023.

Strong Backlog and Land Bank

EFG Hermes highlighted TMG’s robust financial position, citing a contracted sales backlog of EGP‍ 364 billion as⁢ of⁤ june 2025. This backlog is expected to be recognized ⁤as revenue over the following five years, providing a⁢ clear visibility ⁢into future earnings. Furthermore, TMG possesses a substantial land bank ‍of 125.9⁤ million⁤ square meters, providing ample‍ possibility for future development projects.

Saudi Expansion and Market Outlook

The report emphasizes that TMG’s expansion into the