Ayal Securities Gives Nisko "Buy" Recommendation

Company value is estimated at NIS 160-170 million, or 2-8% higher than its current market value.

Ayal Securities has given the Nisko share a "Buy’ recommendation. Nisko, a manufacturer and marketer of electronic and electrical parts, is owned by Yitzhak Nitzan and Aryeh Kidron. The assessment puts Nisko’s company value at NIS 160-170 million, while the company’s current trading value is NIS 157 million. In other words, the company’s economic value, according to Ayal, is 2-8% higher than its market value.

However, it should be remembered that Nisko has benefited from sharp rises, of late. During the past three months, the share rose 100% , of which over 20% occured since the beginning of 1997.

In Ayal’s estimation, Nisko sales in 1996 grew by 15%, compared with 1995, reaching NIS 149 million. Net profits rose from NIS 9.5 million in 1995, to NIS 11.6 million in 1996. The forecast for 1997 is for even sharper growth in sales to NIS 179 million and 35% growth to NIS 15.7 million.

According to Ayal, Nisko will enjoy a relatively high rate of growth in 1997, due to the shekel devaluation, relative to the dollar, and in light of the fact that in 1997, Nisko is scheduled to receive its first round of royalty payments on components developed by IC Com, owned jointly by Nisko and Siemens.