Albilad Capital rates Zain Saudi ‘overweight’; raises TP to SAR 13.93

Albilad Capital set an “overweight” rating on Zain Saudi, raising the target price to SAR 13.93 per share as its second quarter financial performance beat estimates.

Zain Saudi, the third-largest telecommunications provider in Saudi Arabia, posted a SAR 201 million net loss for Q2-2015 beating Albilad Capital’s estimate of a net loss of SAR 254 million.

The investment bank also pointed to the mobile operator’s improvement in operations, cost management and the growing demand for its services as reasons for the higher target price.