MARKET TALK: Dar Al Arkan Double Downgraded By Morgan Stanley

Wednesday, Dec 14, 2011

0742 GMT [Zawya Dow Jones]--Morgan Stanley double downgrades Saudi developer Dar Al Arkan to underweight, from overweight rating. Also cuts target price to SAR6.30 from SAR10.40. Says while Dar Al Arkan should be able to repay its SAR3.75 billion sukuk due July 2012, its FCF [free cash flow] has remained weak and visibility is poor. "The share is cheap, but the debate has now shifted from valuation to liquidity risk," MS says. Shares closed Tuesday up 3.8% at SAR6.80. (brinda.darasha@dowjones.com)

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14-12-11 0744GMT