Zain KSA Upgraded to Buy as United Securities Notes 'Steady' Q2 Performance

05:03 AM EDT, 08/10/2026 (MT Newswires) -- United Securities LLC updated its investment view on Mobile Telecommunication Co. Saudi Arabia (SASE:7030), d/b/a Zain KSA, after the company's second-quarter results. "Zain KSA delivered a steady financial performance in 2Q26, with improvement in profitability despite subdued topline growth. Lower expected credit loss (ECL) provisions and grant income supported the company's strong earnings during the quarter," analysts wrote in a Sunday note. The telecommunications company's net income rose 58.2% annually to 202 million Saudi riyals in the second quarter. Zain KSA's revenue came in at 2.7 billion riyals, broadly unchanged from a year ago and below United Securities' estimates by 5.2%. "Looking ahead, we expect the company to maintain its steady operating performance, although revenue growth is likely to remain under pressure amid ongoing geopolitical uncertainties. Following the recent correction in Zain KSA's share price, the stock is now trading at 13.5x our 2027e EPS, offering an attractive valuation with meaningful upside potential. Accordingly, we maintain our target price of SAR 11.50 per share and upgrade our rating to BUY," the research firm said.