Aljazira Capital downgrades Mobily; cuts TP to SAR 32.10

AlJazira Capital downgraded its rating on Etihad Etisalat (Mobily) to underweight and slashed its 12-month target price to SAR 32.10.

The firm painted a negative outlook for the stock.

This rating was based on a potential drop by 24.6 percent in the stock's price, compared to the current level.

Mobily is not likely to record strong sales from fiber optic services and data centers. The telecom operator’s sales will depend on voice and data services, which may weigh negatively on ​its finances. 

Mobily is expected to generate SAR 1.4 billion net earnings in fiscal year 2015, excluding SAR 2.2 billion allegedly owed by Zain Saudi​ for a 2008 agreement signed between both companies​, according to Al​j​azira.