Karachi: In light of ongoing trade disruptions, JS Global has revised its rating for Pakistan's leading cement producer, PABC, from Sell to Neutral. The financial services company also adjusted the target price for PABC stock to Rs120, marking a 7% decrease. The absence of near-term catalysts, particularly the closure of the Afghan border, has been identified as a significant factor impacting the company's exports and investment strategies.

According to JS Global, despite PABC's robust cash reserves and strong domestic market performance, the current halt in Pak-Afghan trade has stunted potential growth. This has led to a significant revision in the company's earnings projections, with the CY26E EPS cut by 41% to Rs12.39, reflecting a six-month suspension of Afghan trade activities. The report further outlines that a prolonged export disruption could result in additional declines of 20% to 39% in the CY26E EPS.

PABC is set to announce its first-quarter CY26 results today. The expected earnings per share (EPS) is Rs1.79, which denotes a substantial 50% year-on-year decline. This decrease is attributed primarily to the halted exports to Afghanistan and Central Asian markets.