BofA Trims Price Objective, Forecasts for Salik After 'Broadly In Line' Q2 Earnings; Buy Rating Kept

06:45 AM EDT, 08/11/2026 (MT Newswires) -- BofA Global Research trimmed its price objective and earnings estimates for Salik (DFM:SALIK) following the release of the Dubai-listed tollgate operator's second-quarter results. "Salik's 2Q26 results were broadly in line with expectations, with revenue and EBITDA within 2% of BofAe and Bloomberg consensus estimates. Revenue declined 12% YoY as trip volumes fell 13%, while EBITDA margin contracted by less than 2 [percentage points] YoY, reflecting the largely variable cost base and leaving profitability broadly consistent with recent years. 2026 guidance was maintained - revenue growth of -3% to flat implies c.1-7% YoY growth in 2H revenues. We reduce our [price objective] by 1% to AED6.6/sh, reflecting a more gradual return to traffic volume [normalization]," the research firm said Monday. BofA also noted that it has a "more conservative" stance on the anticipated second-half recovery. "Back-to-school season in September will provide some relief, but we do not believe current trends warrant a material acceleration in 2H26. We forecast -3% YoY revenue growth for FY26E (cons: -4%), placing us at the bottom end of the guided range," analysts wrote. While ancillary revenue is considered a "modest contributor" compared with the group's core operations, the research firm sees Salik's ancillary revenue as "one of the few sources of incremental growth independent of traffic recovery." Against this backdrop, BofA reiterated its buy rating on the stock and lowered its full-year 2028 EPS projection to 0.25 Emirati dirham from 0.26 dirham.