Arabtec Now Revealed to Hold at Deutsche Bank
Arabtec Holding PJSC, the largest construction company in United Arab Emirates, was lowered to “hold” from “buy” by Deutsche Bank AG relating to its expansion plans outside Dubai and a weak orderbook.
The company’s share price estimate was reduced 20 percent to touch 2.4 dirhams ($0.65), Deutsche Bank revealed in an e-mailed note to clients today.
Also, it is reported that Arabtec traded at a 1.8 percent higher level at 2.28 dirhams at 11:12 a. m. in Dubai. The shares registered a 15 percent slump this year compared with a 5.5 percent plunge in the Dubai Financial Market General Index.
Arabtec “released a surprisingly weak backlog at 13.2 billion dirhams due to a contract cancellation in Dubai and a lower scope of works in Qatar and Saudi Arabia,” analysts Nabil Ahmed and Athmane Benzerroug wrote in the note dated March 13.
Arabtec on Feb. 28 disclosed is agreement with Abu Dhabi government- controlled Aabar Investments PJSC to further extend the due diligence process for an Arabtec stake to April 16.
“Arabtec’s guidance of maintaining a similar performance in 2010 as that of last year looks challenging and the analysts are forecasting a steep decline in earnings,” Deutsche Bank posted.
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