Al Rajhi lowers STC’s target price to SAR 69/shr

Al Rajhi lowers STC’s target price to SAR 69/shr
Al-Rajhi remained Neutral on STC's stock at current prices
1.84% 83.00 1.50

Riyadh - Mubasher: Al-Rajhi Capital has slightly lowered the target price (TP) for Saudi Telecom Company (STC) to SAR 69 per share, according to a report issued Sunday.

The research firm has also maintained its Neutral recommendation on the stock at the current market price, indicating that any further sell off could provide a buying opportunity.

STC reported a mixed set of results in the third quarter of 2017, with revenues declining and profits rising higher than expected, said Al-Rajhi Capital.

The telecom company reported an 18.22% year-on-year rise in net profits in Q3-17, as profits amounted to SAR 2.62 billion, compared to SAR 2.2 billion in Q3-16.

“Given the recent regulatory change to allow VoIP in Saudi Arabia, we slightly lower our revenue forecast and margins for STC,” the report noted.