Target fair share price for STC is at SR 52
In a report issued by Riyadh Capital Group this week, STC’s International Operations are expected to contribute some 50% of the total revenues, up from the current 34%.
To achieve this, STC will invest in high growth markets, increase its stake in existing subsidiaries and seek attractive acquisition opportunities. The report also reiterated that the buy rating at SR 52 is currently under its fair price.
The Riyadh Capital report sees that the reduction of the distribution of dividends does not reflect reduction or diminishing profits as much as it is a sound decision to achieve further growth in the future. The Company’s sound strategic investment in conserving cash will facilitate long-term growth.
The report projects that STC will make more acquisitions in the short term in the Middle East and will undergo reinvestment operations despite its ability to borrow after the Company announced last week a $1.2 billion Shariah compliant financing deal for its Indonesian operation AXIS to finance its mega expansion plan there.
Riyad Capital is a Saudi company, licensed by the Saudi Capital Market Authority to provide securities services such as, principal, agent, underwriting, arranging, advising, and custody.
Believing in the importance of managing wealth and planning for future financial needs, Riyad Capital provides a wide range of investment products and solutions through a team of experts in investment and financial planning, assets management and corporate investment banking.
Saudi Telecom Company (stc)
We are a world-class digital leader providing innovative services and platforms to our customers and enabling the digital transformation of the MENA region
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