June 20 Goldman Sachs upgraded Saudi Arabia's
Etihad Etisalat Co (Mobily) to "buy" from "neutral"
citing a four-fold increase in its mobile broadband subscriber
base last year.
The brokerage expects Mobily, Saudi Arabia's second-largest
telecoms operator by market capitalization, to benefit from
faster mobile data adoption, superior network quality, and
strong consumption trends in the country.
It expects Mobily to sustain its superior returns and raised
its price target on the stock to 87 Saudi riyals ($23.20) from
58.8 Saudi riyals ($15.68).
Goldman also upgraded landline operator Turk Telekom
to "buy" as it expects the company to sustain growth
and returns due to its superior positioning in a benign
fixed-line and broadband market in Turkey.
It upgraded Zain to "neutral" but expects the
Kuwaiti telco to continue to experience execution difficulties
in its major markets such as Kuwait, Iraq, and Sudan.
Goldman raised targets on African companies such as MTN
Group, Vodacom and media group Naspers Ltd
as it expects high growth and cash-flow generation
potential for companies exposed to fast-growing African
Goldman cut price targets on several other telecoms
companies in Central Eastern Europe, Middle East and Africa
saying in a volatile macro environment there will be a greater
dispersion in valuation multiples for companies depending on
their industry positioning and earnings visibility.
($1 = 3.7505 Saudi riyals)
(Reporting by Eileen Anupa Soreng in Bangalore; Editing by