Al Arabia Outdoor Advertising: exclusivity in a growing market (stays BUY)
We maintain our BUY on Al Arabia Outdoor Advertising (Al Arabia), with an updated 12M price target (PT) of SAR 304, which offers 18% upside. Since our previous update, in July 2023, the company’s share price has performed strongly, driven by winning a number of lucrative contracts, such as Riyadh and King Khalid International Airport. The Riyadh project is the major long-term revenue driver, in our view, which should also strengthen the company’s competitive position significantly locally. Al Arabia is trading at 17.9x 2025E P/E, on our estimates, at a 19% premium vs. its global outdoor advertising peers. Given Al Arabia’s superior growth and profitability, with a 2023-25E EBIT CAGR of 46%, on our estimates, vs. its peers’ median of only 16% (on the consensus), we see this premium as fully justified.
WOOD & Company is the leading investment bank in Emerging Europe. Founded in 1991 and head-quartered in Prague, our footprint spans the region and touches investors around the globe.
A pioneer in Emerging Europe, WOOD executed many of the first CEE equity trades and landmark investment banking transactions. Our electronic trading platform was the first in the region, and remains the best. We are continually expanding our relevance and reach in these ever-evolving markets.
Our equity market share reflects our stature: 7% in Warsaw, 20% in Bucharest, 16% in Hungary, 40% in Prague and 5% in Vienna. Our distribution is unparalleled, with the largest salesforce in the region, servicing a uniquely diverse investor base.
We couple local expertise with a truly international perspective. With offices on the ground in the region, and in key financial hubs such as London and Milano, we are never far from our clients and we remain at the forefront of what’s afoot in the CEE emerging and frontier landscape.
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