Al-Rajhi Capital sees stc profit to hike 5.8% in 2022

 Saudi telecom giant stc will report a net profit surge of 5.8% to SR 11.97 billion by the end of 2022 compared with SR 11.3 billion in 2021, Al-Rajhi Capital estimates.

Al-Rajhi expects a lower target price of the stc stock to SR 120 from previous estimates at SR 140 keeping its “neutral outlook”.

The bank added that stc financial results were lower than expected for 2021, while revenue costs were higher than estimated; this led to decline of gross profit margin.

Stc reported a net profit after Zakat and tax of SAR 11.31 billion for 2021, a rise of 2.9% from SAR 11 billion in 2020 attributing the profit growth to higher revenue, lower operating expenses as well as lower Zakat and income tax.