EFG Hermes: Talaat Moustafa Group’s Real Estate Sales Portfolio Exceeds EGP 3.9 Trillion; Target Price Raised to EGP 130
EFG Hermes Research has reaffirmed its positive outlook on Talaat Moustafa Group Holding (TMG Holding), highlighting the company’s expanding project pipeline and strong sales performance. The report noted that TMG’s real estate sales portfolio has reached EGP 3.9 trillion (USD 78 billion), with expected sales extending through 2038.
The investment bank raised its target price for TMG’s share from EGP 120 to EGP 130, maintaining its “Buy” recommendation, citing new project launches beyond Cairo as key growth drivers.
Stock Performance and Outlook
Despite robust operational results, Hermes noted that the stock’s performance year-to-date does not yet reflect the company’s strong fundamentals or the positive impact of its regional expansion strategy, including planned projects in Iraq and Oman. TMG remains one of Hermes’ top picks in the Egyptian equity market, supported by solid results across its business segments in H1 2025 and anticipated strong sales in North Coast projects during Q3.
Key Projects Driving Growth
The report underscored the launch of Sharm Bay in Sharm El Sheikh, the group’s entry into Oman, and rising sales at the Banan project in Saudi Arabia, which is set to benefit from new foreign ownership laws taking effect in January 2026. Potential participation in the Ras El Hekma mega-project would also provide an additional boost to investor confidence.
Hermes projects sales of EGP 458 billion in 2025 (EGP 210 billion achieved in H1 alone), rising to EGP 505 billion in 2026 and EGP 523 billion in 2027. The upcoming Spine project in Madinaty, expected in 2026 instead of 2025, alongside continued momentum at South Med, is forecast to contribute significantly to future sales.
Revenue Outlook
The report anticipates a sharp increase in development revenues, projecting a 56% year-on-year rise in 2026 to EGP 41.2 billion, followed by a further 35% increase in 2027, driven by the recognition of revenues from previously sold units, including those in the flagship Noor project east of Cairo. Revenues from the Saudi Banan project are expected to begin contributing from 2028, potentially triggering a notable uplift in development income.
Strategic Growth Story
Hermes concluded that TMG remains one of the most compelling growth stories in the Egyptian market, supported by its geographic diversification strategy, resilient contracted sales, and strong pipeline of future revenues. These fundamentals, the report said, solidify TMG’s position as a preferred stock for investors seeking exposure to Egypt’s real estate sector.