Aljazira Capital Keeps Mouwasat Medical Services at Overweight After Q2 Results

07:00 AM EDT, 08/04/2026 (MT Newswires) -- Aljazira Capital maintained its investment view on Mouwasat Medical Services (SASE:4002) after the hospital chain operator's second-quarter results aligned with its expectations, according to a Tuesday note. "Mouwasat delivered a healthy top-line performance in Q2-26 aided by contribution from Yanbu hospital, higher inpatient occupancy across existing network and favorable revisions in select client contracts. The earnings growth was largely attributable to the one-off gain, with underlying profitability remaining under pressure from expansion related costs and the initial ramp-up of new capacity," analysts wrote. For the three-month period, the company logged a 13.1% yearly increase in net income to 211 million Saudi riyals, which aligned with Aljazira's estimate of 204 million riyals and the consensus forecast of 201 million riyals. The company's revenue, meanwhile, rose 10.1% year over year to 876 million riyals, which was in line with the research firm's 886 million-riyal estimate. "While Mouwasat is entering an investment-heavy expansion phase that may keep margins under pressure in near term, we view the company's pipeline of new facilities as a key driver of medium to long term growth. Trading at 2026e PE of 15.3x, we maintain our 'Overweight' recommendation on the stock and the TP of SAR 90.6/share."