Aljazira adjusts ratings for STC, Mobily to “neutral”

Aljazira Capital adjusted on Sunday to “neutral” its ratings for Saudi Telecom Co. and Mobily, Etihad Etisalat.

It set STC’s target price at SAR 69.5 a share, saying the company’s Q4 profit was “disappointing.” Overall, 2015’s performance was acceptable, the brokerage firm said.

STC’s profit in 2016 may gain 15.4 percent to SAR 10.8 billion, Aljazira estimated.

As for Mobily, Q4 profit was a positive change after consecutive losses, but concerns remain over the company’s revenue and high cost.

Mobily’s target price was cut to SAR 24.2 from SAR 27.8 a share.

Aljazira estimated that Mobily would post SAR 291 million losses in 2016.