Arabtec Rises to Month High on Bets Stock Is Cheap: Dubai Mover
Arabtec Holding PJSC (ARTC) 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 2.3 percent to 2.20 dirhams, poised for the highest close since March 3, at 1:18 p.m. in Dubai, trimming this year’s drop to 1.8 percent. About 28 million shares traded, or 80 percent more than 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 0.8 percent. The measure has surged 21 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 (EMAAR), 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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