EFG Hermes Increases TMG Share Price Target to EGP 130: An In-Depth Analysis

EFG Hermes Boosts Talaat Moustafa Group Holding Target Price, Cites Expansion

Cairo, Egypt – Investment Bank EFG Hermes has reaffirmed its positive outlook on Talaat Moustafa Group Holding (TMG), elevating its stock target price to EGP 130 ($2.71) from EGP 120. This revised assessment reflects the firm’s confidence in TMG’s continued success and strategic growth initiatives.

Strong First-Half Performance Fuels Optimism

According to a detailed report released by EFG Hermes, TMG has demonstrated robust performance across all its operating sectors during the first half of 2025. Analysts anticipate this positive trend will persist,particularly with substantial sales expected from its North Coast project,SouthMed,in the coming quarter. The Egyptian housing market has seen a surge in demand in 2025, with prices increasing by an average of 15% nationwide, according to data from the Central Bank of Egypt.

Expansion into New Markets Drives Growth Potential

The investment bank highlighted that the current stock valuation does not fully reflect TMG’s strong operational results or its aspiring expansion strategies, both within Egypt and internationally. The company has recently ventured into the markets of Iraq and Oman,adding new growth avenues.

Key Catalysts for Future Gains

EFG Hermes pinpointed several key factors expected to positively impact TMG’s stock performance in the near future. These include the launch of a new project in Oman and increasing sales at the Banan project in Saudi Arabia, especially following the implementation of new foreign ownership regulations in January 2026. Furthermore, any potential involvement in the Ras el Hekma project is anticipated to provide an additional boost.

Robust Sales Portfolio and land Bank

EFG Hermes estimates TMG’s total growth sales portfolio at approximately EGP 3.9 trillion ($78 billion), planned for realization over a 14-year period ending in 2038. Projected sales figures are EGP 458 billion for 2025 (with EGP 210 billion already achieved in the first half), EGP 505 billion for 2026, and EGP 523 billion for 2027.

the estimates do not yet include the potential contribution from the Sharm Bay project,expected to add EGP 120 billion to the portfolio,or projects planned for Oman and Iraq. TMG also boasts a substantial land reserve of 125.9 million square meters, providing a solid foundation for future development.

Financial Projections and Revenue Growth

The investment bank projects a important increase in TMG’s development revenues. It forecasts a 56% year-over-year rise to EGP 41.2 billion in 2026, followed by a further 35% increase in 2027 as property unit handovers commence. Revenue from the Banan project in Saudi Arabia is projected to begin in 2028, potentially leading to a substantial surge in overall revenue.

Year	Projected Sales (EGP Billions)	Projected Revenue Growth (YoY)
2025	458	–
2026	505	56%
2027	523	35%

Did You Know? TMG Holding is one of the largest real estate developers in Egypt, with a history spanning over five decades.

Pro Tip: Monitoring key macroeconomic indicators in Egypt and Saudi Arabia, such as interest rates and inflation, can provide valuable insights into the real estate sector’s potential performance.

EFG Hermes emphasizes that TMG’s expanding international footprint will strengthen its ability to generate foreign currency revenue,a crucial advantage in the current economic climate. The firm’s strong contracted sales backlog of EGP 364 billion as of June 2025, slated for recognition over the next five years, underscores its financial stability.

Do you believe TMG’s expansion into international markets will substantially contribute to its growth? What other factors do you think will influence its future performance?

Understanding Talaat Moustafa Group Holding (TMG)

Talaat Moustafa Group Holding is a leading diversified real estate developer in Egypt, known for its large-scale residential, commercial, and hospitality projects. The company’s portfolio includes iconic developments like Madinaty, Rehab City, and Four Seasons Hotel Cairo at Nile Plaza. TMG’s success is rooted in its commitment to quality, innovation, and customer satisfaction, establishing it as a major player in the regional real estate market.

Frequently Asked Questions about TMG

• What is the current recommendation for TMG stock? EFG Hermes currently has a “buy” recommendation for Talaat Moustafa Group Holding stock.
• What is the new target price for TMG stock? The target price has been increased to EGP 130 ($2.71).
• What projects are driving TMG’s growth? Key projects include SouthMed in egypt, Banan in Saudi Arabia, and new ventures in Oman and Iraq.
• What is TMG’s total development sales portfolio? It is estimated at approximately EGP 3.9 trillion ($78 billion).
• How will foreign ownership laws in Saudi Arabia affect TMG? The new laws are expected to boost sales at the Banan project starting in January 2026.
• What are the main strengths of TMG according to EFG Hermes? A strong sales backlog, a massive land bank, and expanding international presence.
• What are the projected revenue increases for TMG in the coming years? revenue is projected to increase by 56% in 2026 and 35% in 2027.

Share your thoughts on this developing story. What impact do you foresee from TMG’s international expansion? leave a comment below and join the conversation!

What potential macroeconomic factors could hinder TMG’s performance despite the positive outlook from EFG Hermes?

Key Highlights of EFG Hermes’ Upgrade

EFG Hermes, a leading investment bank in Frontier and Emerging Markets (FEM), recently revised it’s share price target for Talaat Mostafa Group (TMG) Holding, a prominent Egyptian real estate developer, upwards to EGP 130. This represents a meaningful increase from their previous target, signaling growing confidence in TMG’s future performance. The upgrade, announced on September 3rd, 2025, has sparked considerable interest among investors tracking egyptian stock market performance and specifically, TMG Holding stock.

Understanding the Rationale Behind the Target Increase

Several factors contributed to EFG Hermes’ bullish outlook on TMG. These include:

Strong Sales Performance: TMG has consistently demonstrated robust sales figures, notably in its flagship projects like Nour City and Barouk. Recent pre-sales data indicates continued strong demand, exceeding expectations.

Expansion into New Markets: TMG’s strategic expansion beyond its core Egyptian market, including ventures in the Gulf region, is viewed positively by analysts.This diversification reduces reliance on the Egyptian economy and opens up new revenue streams.

Favorable Macroeconomic Conditions: While Egypt faces economic challenges, EFG Hermes believes TMG is well-positioned to navigate these headwinds due to its strong financial position and proven track record. The anticipated stabilization of the Egyptian Pound (EGP) also plays a role.

Attractive Valuation: Despite recent gains, EFG Hermes argues that TMG remains undervalued compared to its peers, presenting a compelling investment chance. TMG share price currently offers a favorable risk-reward profile.

Deep Dive into TMG’s Key Projects

TMG’s success is largely driven by its diverse portfolio of real estate projects. Here’s a closer look at some key contributors:

Nour City: This large-scale mixed-use growth continues to be a major revenue driver for TMG. Phase completions and ongoing sales are exceeding projections.

barouk: A luxury residential project, Barouk is attracting high-net-worth individuals and contributing significantly to TMG’s top line.

Reform: A new project focused on integrated residential communities, Reform is gaining traction with its innovative design and strategic location.

International Expansion: TMG’s ventures in Saudi Arabia and other Gulf countries are showing promising early results, diversifying its geographical footprint.

Impact on Investor Sentiment & Market Dynamics

The EFG Hermes upgrade has had an immediate impact on investor sentiment. TMG stock experienced a noticeable surge in trading volume following the declaration, indicating increased demand. This positive momentum is expected to continue, attracting both institutional and retail investors.

Increased Trading Volume: The upgrade triggered a spike in TMG trading volume on the Egyptian Exchange (EGX).

Positive market Sentiment: The news contributed to a broader positive sentiment within the EGX30 index, reflecting renewed confidence in the Egyptian market.

Potential for Further Gains: Analysts predict that TMG’s share price could continue to climb as the company delivers on its growth plans.

Risks and Considerations for Investors

While the outlook for TMG is positive, investors should be aware of potential risks:

Macroeconomic Volatility: Egypt’s economic situation remains fragile, and any further deterioration could negatively impact TMG’s performance.

Regulatory Changes: Changes in government regulations related to real estate development could pose challenges.

Competition: The Egyptian real estate market is becoming increasingly competitive, requiring TMG to maintain its innovative edge.

Currency Fluctuations: Further devaluation of the Egyptian Pound could impact project costs and profitability.

EFG Hermes’ Advice & Investment Strategy

EFG Hermes maintains a ‘Buy’ rating on TMG, recommending investors accumulate the stock. Their analysis suggests that TMG offers a compelling investment opportunity with significant upside potential.

Long-Term Growth Potential: EFG hermes believes TMG is well-positioned to benefit from Egypt’