Riyadh – Mubasher: Saudi Fransi Capital maintained its “Buy” recommendation on Saudi Mobile Telecommunications Co. (Zain KSA), setting the price target at SAR 10.6 per share.
Saudi Fransi evaluation came after Zain KSA’s announcement of its financial results for the second quarter of 2016.
The share’s performance fell 5% since the beginning of the year but topped the sector which was down 8%, according to SFC report.
The share is traded at a price earnings ratio (P/E Ratio) of 8 times, higher than the P/E Ratio of the sector of 7 times.
Net losses were better than expectations, where they reached SAR 184 million in the second quarter of 2016, while they were expected to reach SAR 213 million.
Total profit margin hiked 64.6% or 745 base points in Q2-16 compared to the same quarter of the previous year, which was attributed to higher revenues.
