Oman's Galfar starts with underperform

London: Credit Suisse began coverage of Oman-based contractor Galfar Engineering with an "underperform" rating, saying it was cautious on the firm due to its high geographical concentration and low visibility for backlog growth.

The brokerage, which set a price target of 0.61 riyal (Dh5.83) on shares of Galfar, however, maintained its positive view on the Middle East and North Africa (MENA) construction sector citing the governments' commitment to infrastructure spending and better outlook for new contract awards.

MENA construction companies which are currently trading at a discount to global peers, deserve to trade at higher multiples.