From Argaam news
Al Rajhi Capital initiated its coverage of Scientific & Medical Equipment House Co. (Equipment House), placing an "Overweight" rating on the stock, with a target price of SAR 77.
It said that Equipment House record, which extends for four decades in the field of non-medical operation and maintenance, makes it a qualified player to participate in bidding, and also helps it win contracts, in addition to providing multiple services.
Equipment House owns four subsidiaries and three wholly owned companies, which is a major driver and an additional source of growth, especially as it works in the field of supplying medical equipment and maintenance, as many private hospitals are witnessing huge expansions.
The brokerage indicated that Equipment House will likely see more growth in H2 2023, while Q1 profit may face pressure due to high financing and labor costs, expecting strong demand to continue in the near future.
Al Rajhi Capital also expects Equipment House to post net profit of SAR 65 million and SAR 82 million for 2023 and 2024, respectively.
