Falcom maintains Mobily’s “Neutral” recommendation, raise TP to SAR 23

Falcom Financial Services maintained its “Neutral” recommendation for Etihad Etisalat Co. (Mobily) share, and raised its target price from SAR 21.50 to SAR 23 per share.

“The company will continue posting profits in the next upcoming quarters, as it will focus on enhancing its operational efficiency,” Falcom said in a research note today.

“The company aims to acquire infrastructure projects to focus on improving its services and capture demand for additional services from corporate customers,” it added.

“Mobily operates in a fiercely competitive environment and continues to face market, regulatory, and economic challenges, making it difficult for the company to record a sharp rebound,” Falcom said.

Mobily’s revenue continued to rise for the seventh consecutive quarter to SAR 3.3 billion in Q2 2019, aided by continued expansion in the subscriber and FTTH active base, coupled with higher revenue from business and wholesale units.