In its October 26, 2026 first-take report on Solutions by stc (7202), anb capital highlighted margin pressure and early-retirement programme costs that limited the earnings benefit of revenue growth.
Existing SAR127 target
The report cited its existing Overweight rating and SAR127 target, within a 12-month valuation framework. It explained that the target was adjusted from SAR254 for a one-for-one bonus issue. This arithmetic adjustment should not be presented as a fresh valuation downgrade. The rating and target are anb capital’s research opinion, not a guaranteed return.
Market News perspective
The report separates business growth from its conversion into profit. Margins, operating expenses and retirement-programme costs remain useful measures of earnings quality alongside revenue trends.
What investors should watch
Friday, October 30 is a weekly Saudi market holiday. In subsequent sessions, investors can monitor company commentary on margins and expenses, the main issues highlighted in the report.
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