Itqan Cap revises Mouwasat rating to ‘Overweight’, TP at SAR 149.6/share

17/11/2020 Argaam


Itqan Capital revised its recommendation on Mouwasat Medical Services Co. (Mouwasat) to ‘Overweight’, while also increasing the target price (TP) to SAR 149.6 per share.

 

Exceptional change in seasonality patterns for Q3 2020, coupled with the backlog previously created by curfew measures, resulted in increased demand for Mouwasat’s services in the quarter, the research firm said in a recent report.

 

Meanwhile, AlKhobar hospital also continued to improve its profitability supporting Mouwasat’s net earnings.

 

The company delivers the sector’s highest returns and is expected to continue to outperform the sector, the report said. “Nonetheless, it has the sector’s lowest price-to-earnings (P/E) which we do not think is justified,” Itqan Cap noted.

 

The research firm maintains its bullish outlook for Mouwasat, backed by the continued improvement in profitability of AlKhobar hospital (20% of Mouwasat’s total capacity) and commencement of operations of expansions in Madinah and Dammam.

Comments {{getCommentCount()}}

Be the first to comment

loader Train
Sorry: the validity period has ended to comment on this news
Opinions expressed in the comments section do not reflect the views of Argaam. Abusive comments of any kind will be removed. Political or religious commentary will not be tolerated.