“Both the Middle East and African markets should, in our view, be able to create strong value accretion from growth in data,” the brokerage said in a note.
Investors should turn positive on Middle East telecom companies in the second half of this year, as valuations for these stocks are cheap and forecasts are edging up, Nomura said.
Nomura raised its price targets on Qatar Communications Qtel, Saudi Telecom Co, Millicom International Cellular SA and Mobile Telecommunications Co. Kuwait (Zain).
It lowered its price targets on Etisalat, Mobile Services Co. Egypt (Mobinil) and Mobile Telecommunications Co. Saudi Arabia (Zain KSA).
The brokerage maintained Qtel, Etihad Etisalat (Mobily) and MTN as its preferred picks.