Itqan Capital has maintained its positive outlook on Mouwasat Medical Services Co. with a “Buy” recommendation, expecting its revenue growth to continue.
The brokerage firm said in a research note that Mouwasat’s profits grew by 15% year-on-year (YoY), despite continued losses at Al Khobar hospital in Q3 2019.
“We expect that Mouwasat will reap the benefits of its expansion plan gradually, supported by its hospitals' network and its geographical presence,” the note said.
Despite the fierce competition in the Saudi healthcare sector evident by the expansion plans taking place by all players, the brokerage firm still believes that Mouwasat has the privilege due to its geographical expansion network especially in the Eastern region.
“Therefore, we maintained our positive outlook towards Mouwasat, as it is set to achieve a gradual increase in its new hospital’s operation capacity, supported by the rise in population in the Kingdom,” Itqan Capital added.
The brokerage firm raised the target price to SAR 105.40 per share from SAR 102.40 per share for the company.
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