Thursday, Sep 08, 2011
0949 GMT [Zawya Dow Jones]--Political instability in the Middle East & North Africa has had an adverse impact on real estate project execution and awards, despite continued strong fiscal spending across the region, says HC Securities. Notes however working capital is improving. Cuts Drake & Skull International target price to AED1.2, from AED1.3 previously; maintains its overweight rating. Says DSI remains its preferred play on the Mena construction sector as it offers deep value despite its strong earnings momentum. Cuts Depa's target to $0.57 versus $0.69; downgrades it to neutral rating. Maintains Arabtec at neutral rating; target price AED1.4. "While Arabtec's valuation is highly sensitive to margins, the stock price has held up well despite rapid margin deterioration in 1H11 as the market appears to be pricing in award wins strong enough to offset weaker profitability."
(tahani.karrar@dowjones.com)
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(END) Dow Jones Newswires
08-09-11 0950GMT
