Goldman Sachs has launched an equity research report covering investment opportunities in the Middle East region.
The report depicts Real Estate Value Chain players and emphasizes the role of the construction sector in leading the economic growth.
The report covers four construction related companies and recommended "BUY" for Arabtec shares and "NEUTRAL" for the remaining shares (Orascom Construction Industries, Aerated Concrete Industries & Bildco)
Targeted 12 months price for the companies; Arabtec Dh 8.6 , Orascom £P 462, Aerated Concrete Industries DH 0.60 & Bildco DH 2.4
The report believes that Arabtec enjoys a longer-term advantage as a pure play contractor. It is the contractor of choice for a number of the leading property developers. Has a strong political patronage and benefit from the technical expertise gained from building iconic projects including Burj Dubai.
The report staes that Orascom is a strong regional operator with large exposure to cement which reduces the sustainability of its returns. Aerated Concrete Industries & Bildco are in competitive business of material supply and mid-tier contracting and are under constant margin pressure.
Arabtec reported that it has a backlog of DH 13 billion.
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© Press Release 2007
