FAB Revises DEWA Rating to Buy After 'Stable' Q2 Performance

05:54 AM EDT, 08/20/2026 (MT Newswires) -- FAB Securities updated its investment view on Dubai Electricity and Water Authority (DFM:DEWA), or DEWA, as it took note of the company's earnings and performance in the second quarter. "We revise our rating from ACCUMULATE to BUY on DEWA with an unchanged target price of AED 3.30. The Company's stock price declined 9.7% from our previous rating (March 2026). DEWA delivered a stable operational performance in 2Q26, with net profit increasing 1.4% YOY to AED 2,289 Mn in 2Q26. However, on a 1H26 basis, DEWA reported recorded revenue of AED 14.86 Bn and EBITDA of AED 7.32 Bn, representing YOY growth of 1.8% and 5.3%, respectively, supported by sustained demand for electricity, water and cooling services, continued customer growth and disciplined operational performance," analysts said in a Thursday first look note. For the second quarter, the electricity and water services company's net profit rose 1.4% annually to 2.29 billion Emirati dirhams, in line with FAB's estimate of 2.30 billion dirhams. Analysts attributed the rise to an increase in DEWA's other and finance income, as well as lower direct and tax expenses, among others. Revenue was 8.41 billion dirhams, against the research firm's 8.95 billion-dirham forecast.