Saudi Gazette - NCB Capital: Valuations are key attraction of KSA telecom sector:
"Growth in Saudi Arabia’s telecom sector will remain driven by the broadband and corporate segments of the economy, NCB Capital, the GCC’s leading wealth manager and the Kingdom’s largest asset manager, said in its latest update on the Kingdom’s telecom sector.
Contraction in margins due to the increasing competition from Zain and the entrance of the MVNOs, as well as the reduction in Haj visas, are the sector’s main concerns, it said adding that the valuation of the sector remains attractive at 9.5x 2014E P/E, 5 percent below regional peers.
“We maintain our overweight ratings on Mobily, Zain and STC, with Mobily remaining our top-pick due to its strong fundamentals and positive dividend outlook,” said Abdulelah Babgi, equity research analyst at NCB Capital. "
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