Aljazira Capital remains ‘overweight’ on STC; TP set at SAR 82.7

Aljazira Capital maintained an “overweight” rating on shares of Saudi Telecom Co.

(STC) and set its target price to SAR 82.70 on the company’s strong fundamentals.

Despite STC’s lower-than-expected second-quarter profit, the telco’s customer base improved, while its international operations generated a higher profit compared with the previous quarter, the brokerage firm said in a report.

On July 29, the company posted a Q2-2015 net profit of SAR 2.56 billion, marking a nine percent decline from SAR 2.8 billion in Q2-2014.