Cairo-based investment bank EFG-Hermes cut its short-term recommendation on Saudi Electricity to "neutral" from "accumulate", and its long-term recommendation to "accumulate" from "buy".
The bank said the fair value of the share was $3.81. The stock closed at $4.07 on Wednesday.
"We continue to believe that Saudi Electricity will play a major role in helping the kingdom meet its future electricity needs, with the company being responsible for the vast majority of the electricity generation and all of the electricity transmission and distribution activities," the bank said.
The bank said there was no effective trigger for the stock to perform in the near term and the company would have slow earnings growth in 2008 and 2009. (Reuters)
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