Kuwait-Mubasher: NBK Capital has affirmed its ‘Positive’ outlook and ‘Buy’ recommendation on Mabanee stock, according to a statement published by the research unit.
NBK Capital set Mabanee’s fair value at KWD 1.160 per share.
The Kuwaiti company is currently expanding The Avenues project in Kuwait, and is looking to enter Saudi Arabia with three malls in the next four or five years.
“The current share price does not factor in the positive impact expected from these expansions outside Kuwait, and we thus retain our Buy recommendation,” said NBK Capital.
The Avenues phase IV has an estimated cost of KWD 220 million; meanwhile, Mabanee recently signed agreements with local banks to fund the expansion of this project.
“Mabanee is also planning to develop three malls in Saudi Arabia; The Avenues Riyadh, GLA mall in Khobar, and GLA Princess Nora Center in Riyadh.
However, NBK Capital has excluded the Princess Nora Center from forecasts for now as the mall is to be developed on a BOT basis.
“Significant cost overruns and delays for the KSA projects and a material contraction in consumer spending in the country are our key downside considerations for Mabanee,” clarified the research unit.
