Communications

Report by AlphaMena

Over the last couple of years, Etisalat has seen its share price erase nearly all the gains made following an impressive surge in 2021, but does the sell-off provide an opportunity for investors? AlphaMena doesn’t think so. Global inflationary pressures with double-digit inflation rates in Egypt and Pakistan are hampering the group’s revenue and margins. Peer valuation methods are also still bearish. The stock trades at 7.4x 2024 EV/EBITDA and 16.6x P/E (vs. 5.9x and 13.2x for its MENA peers). AlphaMena prefers to bet on more attractive telecom operators, which offer higher dividend yields (Zain, Vodafone Qatar and STC), especially in times of uncertainty.