National Central Cooling has been rated a “buy” by analysts at AlphaMena, following an investment in the company by French utility Engie in June.
The Tunisian analyst firm said it expected the shares of the Dubai-based cooling provider, known as Tabreed, to trade at Dh2.55 within 6 months, suggesting a 21 per cent increase on Thursday’s closing price.
Engie last month said that it would acquire a 40 per cent stake in the company, which provides cooling services for the Dubai Metro, Abu Dhabi’s Ferrari World and several other developments across the Gulf, for about Dh2.8 billion.
The deal will see Abu-Dhabi’s Mubadala Investment Company convert its mandatory convertible bonds into 1.1 bn shares, which will be transfered to Engie.
Tabreed’s stock has risen 4.5 per cent so far this year, compared with a loss of 3.7 per cent for Dubai’s headline index.
Analyst target prices for the stock compiled by Bloomberg range from Dh1.47 to Dh2.55.
Tabreed’s first quarter profit rose 19 per cent to Dh75.4 million, after adding 20,000 refrigerated tons of cooling capacity during the quarter.