Saudi Aramco Investors Should Cash Out Now, Bernstein Says
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Saudi Aramco investors should take profit now after shares in the world’s biggest company jumped 10% in their first day of trading Wednesday, analysts at Sanford C. Bernstein & Co. recommended in a note to clients.
A low dividend yield, the political risk of the government still running the company, and a bleak outlook for oil prices all point to a fair valuation for Saudi Aramco that’s about 28% lower than the $1.88 trillion it reached after its first day of trading in Riyadh, Bernstein analysts including Neil Beveridge and Oswald Clint said in the Thursday note.