| 15 Mar 2010 |
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Arabtec share estimate downgraded
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Arabtec HoldingArabtec Holding
, the largest cons-truction company in the UAE, has been downgraded to 'hold' from 'buy' by Deutsche Bank on concerns about its plans for expansion out-side Dubai and a weak orderbook, Bloomberg newswire said yesterday.The share price estimate was lowered by 20 per cent to dhs2.40, Deutsche Bank said.
shares have slumped 15 per cent this year compared with a 5.5 per cent drop in the Dubai Financial Market's General Index.ArabtecArabtec "released a surprisingly weak backlog at dhs13.2 billion due to a contract cancellation in Dubai and a lower scope of works in Qatar and Saudi Arabia", Deutsche Bank said.
The orderbook, excluding a project in Russia, fell short of an expected dhs17.7 billion.
"This raises concerns regarding whether ArabtecArabtec can manage its way out of Dubai without too much damage and successfully expand abroad," Deutsche Bank said.
"While uncertainties remain high regarding Dubai receivables and Aabar's potential cash injection, we believe the stock no longer offers an attractive risk/reward combination."
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