Aljazira Cap issues 2018 forecasts for telecom firms’ profits

Aljazira Capital released its outlook for the Saudi telecom companies, expecting them to show some improvement in 2018. It has also issued forecasts for the 2018’s net profit for a number of firms under coverage, including Saudi Telecom Co. (STC), Mobily and Zain KSA.

STC’s net profit for 2018 is expected to reach SAR 10.6 billion, with a 4.4 percent year-on-year (YoY) increase. Aljazira Capital maintained the price target of SAR 88.8 per share, with a neutral recommendation.

Zain KSA is forecasted to post a loss of SAR 185 million in 2018, versus profit of SAR 11.5 million. The research firm downgraded the price target to SAR 6.4 per share, with a neutral recommendation.

As for Mobily, it is projected to post losses of SAR 658 million for the current year. The price target was maintained at SAR 13 per share, with an Underweight recommendation.