Riyadh-Mubasher: Saudi Telecom Co. (STC) stock is an attractive investment opportunity despite its recent rally after the operator announced its dividend plan.
The stock trades at a P/E ratio of 11.7x, compared with those of the sector and market at 17.3x and 11.1x, respectively, in 2016, the research firm added.
Riyad Capital set the price target at SAR 73, with upside potential of 10.7%. It placed a 'Buy' recommendation on the stock.
The think tank set the weighted average cost of capital at 8.84%, with long-term growth of 2%.
