Mubasher: HSBC has modified its recommendation on the stock of Mobile Telecommunications (Zain) to “Buy” from “Hold”.
The London-based banking group has estimated the fair value (FV) of Zain at 550 fils, an increase of 20% when compared to the stock’s last closing price, Alrai Newspaper reported.
HSBC ascribed its upgrade to positive developments witnessed by the telecom company in the Middle East and North Africa (MENA) markets, namely in Saudi Arabia and Iraq, the newspaper added.
The bank noted that the business profile of Zain KSA has not yet reflected on the stock on Zain Group, according to Alrai.
Zain Group is expected to acquire $160 million of foreign investments valued at $1.2 billion, following the upgrade of Boursa Kuwait to an emerging market as well as the forecast promotion by MSCI, the newspaper noted.
HSBC expected Zain Group to register earnings per share (EPS) ranging from 8.1% to 9% during the coming three years, Alrai Newspaper said.
