April 11 (Bloomberg) -- Arabtec Holding PJSC climbed to the highest in a month on investor bets the shares of the Persian Gulf’s largest publicly traded builder are cheap compared with Dubai-based real estate developers.
The stock gained 3.3 percent to 2.22 dirhams, the highest close since March 3 and trimming this year’s drop to 0.9 percent. About 33 million shares traded, or more than double the three-month daily average, according to data compiled by Bloomberg. Arabtec was the second most-actively traded stock on Dubai’s benchmark index, which rose 1 percent. The measure has surged 22 percent this year.
United Arab Emirates construction projects are picking up, with Arabtec winning contracts to build a branch of the Louvre and an airport terminal in Abu Dhabi. The company, which last month said it has a “strong” backlog of 22 billion dirhams ($6 billion), trades at an estimated price-to-earnings multiple of about 12. That compares with 15 times for Dubai-based Emaar Properties PJSC, whose shares have surged 43 percent this year.
Arabtec’s stock “has been a lagger in comparison to the market and it’s trading at attractive valuation,” said Marwan Shurrab, vice-president at Dubai-based Gulfmena Investments Ltd.
Nine analysts recommend investors sell the shares of Arabtec, while three have a hold rating on the stock, according to data compiled by Bloomberg.
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