UPDATE 1-CI Capital upgrades Egypt's Eastern, Oriental Weavers

* Upgrades Eastern Company to "buy" from "underweight"

* Oriental Weavers upped to "buy" from "hold"

(Adds details, quote from statement)

CAIRO, Nov 3 (Reuters) - CI Capital Research said on Tuesday it had upgraded its ratings for Egyptian tobacco monopoly Eastern Company (EAST.CA) to "buy" from "underweight" and on carpet maker Oriental Weavers (ORWE.CA) to "buy" from "hold".

CI Capital said in a note that Eastern had maintained a 4 percent 4-year compound annual growth rate on revenues and 16 percent on earnings, and traded at a forward price-to-earnings ratio of 7.3 times.

"The company's operation proved its resilience to the prevailing economic slowdown through its sustained revenue growth," CI Capital said, adding that it had raised its long-term fair value on the share to 155 Egyptian pounds ($28.32) from 136 pounds.

It added that Eastern's EBITDA margin improved in fiscal year 2008/9 on the back of a move toward making higher-margin foreign brands for multinationals such as British American Tobacco (BATS.L) and Philip Morris (PM.N).

The note added Eastern could see further margin improvements once it completes a move to a new 5.5 billion pound complex in 2012.

Eastern reported unaudited net profit of 151 million pounds in the three months to end-September compared with 148 million in the same period a year earlier. Shares were 6.2 percent down at 118 pounds by 1208 GMT.