If you’re looking for an apartment, now is the timeOctober 6, 2015 6:07
Riyad Capital raises Zain Saudi price target
Increased optimism on successful capital restructuring will help Zain Saudi Arabia to further narrow its valuation gap with peers through 2012, Riyad Capital said and raised its price target on the telecom operator's stock by nearly 40 percent.
February 13, 2012 2:26 by Reuters
“Clearly the restructuring overhang was hampering share performance and now with the endgame in sight, we believe prospects for valuation multiples expansion have increased,” the brokerage said in a note to clients.
In January, Zain Saudi said it has approval to extend the maturity of its 9.75 billion riyal ($2.6 billion) Islamic financing facility for an additional six months.
The brokerage, which raised its price target on the stock to 8.90 riyals from 6.40 riyals, also expects the company to gain from strengthened balance sheet, easing capital expenditure pressure and its redirected focus on operating performance.
Riyad Capital cut its debt forecast on Zain Saudi to 11.9 billion riyals from 16.7 billion riyals in the year-ago quarter and said it expects the company to complete its capital restructuring and debt refinancing by the end of third quarter.
The brokerage maintained its “buy” rating on the stock.
Shares of the company, an affiliate of Kuwait’s Zain , closed at 7.35 riyals on Sunday. The shares have risen 20 percent since the company announced the extension to its credit facility on Jan. 28. (Reporting by Sweta Singh in Bangalore; Editing by Maju Samuel) *image from alroyya.com