Mubasher: Qatar National Bank (QNB) Group on Thursday announced that its research unit has initiated coverage on Barwa Real Estate Company (RBES) with a target price (TP) of QAR 39 per share instead of QAR 34.50, higher by 9.9%, for the coming 12 months, according to QNB’s statement.

“We positively view BRES’ operating assets and development pipeline especially its rental income segment,” the statement added.

QNB expected an increase in the company’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) with an annual compound growth rate of  66% until 2020.

Barwa’s rental income growth is expected to rise by 12% per annum during 2020 because of the contribution of the above-mentioned factors.

 Barwa’s cash flow is expected to jump to QAR 4 billion during the period between 2018 and 2022, according to the statement.

By the end of Thursday’s trades, Barwa’s stock advanced 2.9% to QAR 35.5.