Mouwasat Medical Services Co.’s rise in net profit by 73% year-on-year (YoY) for Q3 2020 to SAR 161 million came ahead of Al Rajhi Capital’s forecasts by 33.2%, it said in a recent report.
It attributed the better-than-expected results to improvement in the performance of the company’s specialized departments, coupled with improved patient occupancy, and higher referrals from the Ministry of Health.
The brokerage firm also expects Mouwasat's net profit to rise to SAR 546 million and SAR 703 million in 2020 and 2021, respectively.
AL Rajhi Capital reiterated its “Overweight” recommendation on the stock, raising its target price (TP) to SAR 165 per share, from SAR 123/share.
The “Overweight” rating implies that the stock is currently trading at a discount to its 12 months price target, which will typically provide an upside potential of over 10% from the current price levels over next twelve months, according to the brokerage firm.
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