Credit Suisse ups Mobily, Saudi Telecom price targets

Brokerage sees another strong year for mobile data driven by rising smartphone and tablet adoption
Credit Suisse ups Mobily, Saudi Telecom price targets
STOCK WATCH: Credit Suisse raised its price targets on Mobily and Saudi Telecom Co (STC) (Getty Images)
By Reuters
Mon 21 Mar 2011 05:11 PM

Credit Suisse raised its price targets on Mobily and
Saudi Telecom Co (STC) and said it sees another strong year for mobile data
driven by rising smartphone and tablet adoption.

The brokerage said it continues to prefer "outperform"-rated
Mobily, Saudi Arabia's second-largest telecoms operator, to
"neutral"-rated market leader and state-owned STC.

"Assuming the Saudi political backdrop remains stable, Mobily looks
extremely cheap in our view and should outperform as political uncertainty
subsides," Credit Suisse said.

The brokerage raised its price target on shares of Mobily to SR65 from
SR62, and on STC to SR42.5 from SR40.

Recent product announcements, revamped website and stores, and re-energised
advertising suggest STC may be starting to stabilise its position in the
domestic consumer segment, Credit Suisse said.

"We think that is a positive for the stock but we remain concerned about
downside risks to shareholder value from STC's determination to pursue further
international expansion," it added.

Shares of Mobily and STC were trading at SR49.10 and SR37.800,
respectively, at 0947 GMT on Monday.

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