Goldman Sachs initiated coverage of Batelco Group with buy rating.
According to Goldman Sachs latest Global Investment Equity Research Report of EMEA Emerging Markets, covering 121 companies across 10 countries, identified Batelco Group shares as attractively valued and issued a “buy” recommendation to potential investors.
Based on a number of criteria, Goldman Sachs, initiated coverage of Batelco Group, issuing a buy rating with return potential of 55% and a 12-month price target of BD0.61.The Buy recommendation, according to the report, was based on a positive valuation and 10% dividend yield. It also reflects Batelco Group’s strong domestic market position in Bahrain, despite increased competition, growth in overseas markets and further opportunities to unlock value. The report also based its positive outlook for the Group on its solid cash flow generation, high capital expenditure efficiency as well as its strong balance sheet position. As of 30 September 2011, Batelco Group was free of debt and reported a cash and bank balance of $230.2million.
The Report also cites opportunities for the Group to reinvest its solid cash flows to create a strong international company or niche regional player. Batelco Group is already operating in seven markets across the MENA region and India.