Riyadh – Mubasher: Al Rajhi Capital has downgraded the target price (TP) of Etihad Etisalat Co’s (Mobily) stock to SAR 16.5 per share instead of SAR 18.

This downgrade will lead to a decline of 12% in the stock’s current market price, according to a recent statement.

During the second quarter of 2017, Mobile incurred a loss of nearly SAR 190 million which was lower than Al Rajhi's and analysts’ estimates of SAR 145 million and SAR 151.9 million, respectively. 

“The decline in gross margin could be attributed to the increasing market share of competitors,” Al Rajhi Capital said.