Following yesterday's collapse of the Kardan-IDB deal, JP Morgan updated its recommendation on IDB Development and Discount Investments.

Analyst Ali Riza Incekara estimates failure to conclude the deal could have a negative impact on the group's restructuring process, although it is possible that Leon Recanati, after selling his 20% stake in the family's Swiss bank DBTC, could increase his stake in the IDB takeover.

Incekara believes the chances a new foreign or local investor will enter the deal, are low. He attributes this to the deteriorating security situation and difficulties in obtaining regulatory approvals.

The analyst also notes that Discount Investments and IDB Development have underperformed the market by 7% and 8% respectively over the past month. He believes Discount Investments, rated ¿underperform¿, is trading at an 11% discount off its net asset value. Incekara rates IDB Development ¿market perform¿, noting its 20% discount.

More from Technology

These 5 Tech Giants Still Aren't That Expensive

These 5 Tech Giants Still Aren't That Expensive

3 Great Stock Market Sectors Millennials Should Invest In

3 Great Stock Market Sectors Millennials Should Invest In

50 Stocks That Could Be Shredded If a U.S. Trade War With China Ignites

50 Stocks That Could Be Shredded If a U.S. Trade War With China Ignites

Trump Puts Tech in Trade War Crosshairs With Planned Curb on China Investment

Trump Puts Tech in Trade War Crosshairs With Planned Curb on China Investment

Intel CEO Brian Krzanich's Ouster Proves CEOs Aren't Above the Rules

Intel CEO Brian Krzanich's Ouster Proves CEOs Aren't Above the Rules