Renaissance Capital initiated coverage of leading cheese maker Domty, according to an emailed statement. It assigned a hold recommendation on the stock citing “too many uncertainties” and an expectation that cheese consumption growth will slow down. Rencap says the current market price is not cheap enough to compensate for risks Domty faces. In assigning a target price of EGP 8.80 per share, Rencap writes, “We believe that cheese, which makes up c. 85% of revenue, will experience a slowdown in growth given the already high rates of per-capita consumption in Egypt. We also expect the highly-competitive juice category to face volume and pricing pressure. Lastly, we believe the new strategy of trying to bring distribution in-house and entering the snack foods category could put pressure on margins.” Domty shares closed yesterday at EGP 8.85 per share, down 0.67%. Tap here to read Renaissance Capital’s statement on the initiation.