Riyadh-Mubasher: Alistithmar Capital recommended ‘Accumulate’ on Bupa Arabia, setting the price target at SAR 125.
The research firm said it used the residual income model in setting the fair value, with an average cost of capital at 13% and growth rate of 3%.
“The strong growth in the company’s revenues and efficient ability to deal with the market variables led it to record the biggest profitability in the Saudi insurance sector,” Alistithmar said.
The research firm expects Bupa’s market share to grow over the next years on its strong experience and development of its products and technical capabilities.
