Bloomberg News

Arabtec Price Estimate Cut 14% at Deutsche Bank on New Orders

October 11, 2011

Oct. 11 (Bloomberg) -- Arabtec Holding Co., the United Arab Emirates’ biggest construction company by market value, had its price estimate cut 14 percent at Deutsche Bank AG.

“Arabtec’s year-to-date new orders have been light while margin compression has been sharp, which we believe is the new reality as competition increases,” analyst Athmane Benzerroug wrote in a report to clients dated yesterday. “In the near term, we neither see margin upturn nor significant improvement in backlog.”

The price estimate was reduced to 1.2 dirhams from 1.4 dirhams with a “hold” recommendation at the bank.

Deutsche Bank said it continues to prefer Drake & Scull International over Arabtec because of “strong backlog growth, healthier balance sheet.”

To contact the reporter on this story: Zainab Fattah in Dubai at zfattah@bloomberg.net

To contact the editor responsible for this story: Shaji Mathew at shajimathew@bloomberg.net


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