BofA Starts Riyadh Cables at Buy on Market Position, Growth Visibility

07:30 AM EDT, 10/14/2026 (MT Newswires) -- BofA Global Research initiated coverage of Riyadh Cables Group (SASE:4142) with a buy rating and a price objective of 130 Saudi riyals, highlighting the company's market position as Saudi's "biggest cable manufacturer." "We identify three key drivers for our rating: 1) company benefitting from power infrastructure investments delivering earnings CAGR of 10% between 2025-2028E, ahead of consensus at c5%, 2) strong visibility through its backlog for 12-18 months, with optionality from international expansion; and 3) an undemanding valuation versus its history with stock at around 12x 1yr forward PE vs LT average of 20x," according to a Tuesday note. Analysts said Riyadh Cables is poised to benefit from Saudi Energy's grid investment plans, with a national target of 103 gigawatts of renewable capacity by 2030. As such, BofA expects the company to deliver a 10% earnings compound annual growth rate from 2025 to 2028, compared with the consensus of 5%. The research firm also noted the potential for a further 10% to 15% sales growth for the company in two to four years on the back of its efforts to drive growth outside Saudi Arabia through its Uzbekistan acquisition and deal to operate a plant in Syria. "We think that a business delivering ~10% earnings CAGR, 30%+ returns on capital, a c.5% dividend yield, with a strong balance sheet warrants a higher valuation (our PO assumes c15xPE)," analysts wrote.