KenGen: We initiate coverage on Kenya Electricity Generating Company (KenGen) with a BUY recommendation. Based on our EV/EBITDA valuation we arrive at a price target of KES 21.70 which represents an 35.2% upside from the current share price of KES 16.05 (17.06.2013).
Kenya Power: We initiate coverage on Kenya Power with a NEUTRAL recommendation. Based on our EV/EBITDA valuation we arrive at a price target of KES 14.72 which represents an 5.2% downside from the current share price of KES 15.50 (17.06.2013).
Faida Inv Bank Power Sector Coverage June 2013