Riyad Cap issues Q4 forecasts for telcos; STC seen 12% higher

15/01/2018 Argaam

 

Riyad Capital has issued its Q4 2017 earnings forecasts and recommendations for Tadawul-listed telecom companies under its coverage.

 

Saudi Telecom Co. (STC) is expected to record a 12 percent year-on-year (YoY) increase in net income to SAR 2.404 billion.

 

Etihad Etisalat Co. (Mobily) will likely report a net loss of SAR 161 million in Q4, the brokerage firm said.

 

Meanwhile, Mobile Telecommunications Co. Saudi Arabia (Zain Saudi) is seen posting a net profit of SAR 2 million for the same period.

 

Q4 net profit estimates (SAR mln)

Company

Q4 2017E

YoY Variation

Average estimates

STC

2,404

+12%

Average estimates

Mobily

(161)

--

Average estimates

Zain

2

--

Average estimates

 

Riyad Capital kept its recommendations on STC and Zain unchanged. The brokerage issued a “neutral” rating on Mobily, with a target price of SAR 18 per share.

 

Riyad Cap Recommendations

Company

Recommendation

Target price (SAR/share)

Previous

New

Previous

New

STC

Neutral

Neutral

73

73

Mobily

Under review

Neutral

--

18

Zain

Buy

Buy

12

12

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