United Securities Kicks Off Adnoc Gas Coverage at Buy on Growth Potential
United Securities LLC on Monday began its coverage of Adnoc Gas (ADX:ADNOCGAS) with a buy rating and a price target of 3.95 Emirati dirhams. The research view is backed by the Emirati natural gas distributor's leading market position in the industry, its growth potential due to its initiatives and projects, as well as its low earnings sensitivity to oil price fluctuations due to its long-term deals and flexible feedstock pricing. "We view ADNOC Gas as a strong defensive play in a volatile and uncertain macroeconomic environment. The company also offers meaningful growth potential through its ambitious capital expenditure plans, while delivering on its stated objective of a 5% annual dividend increase. We forecast EBITDA growth at a [compound annual growth rate] of 6-8% over 2025-30E and estimate a dividend yield of approximately 5% for 2026," analysts said.
United Securities LLC on Monday began its coverage of Adnoc Gas (ADX:ADNOCGAS) with a buy rating and a price target of 3.95 Emirati dirhams.
The research view is backed by the Emirati natural gas distributor's leading market position in the industry, its growth potential due to its initiatives and projects, as well as its low earnings sensitivity to oil price fluctuations due to its long-term deals and flexible feedstock pricing. "We view ADNOC Gas as a strong defensive play in a volatile and uncertain macroeconomic environment.
The company also offers meaningful growth potential through its ambitious capital expenditure plans, while delivering on its stated objective of a 5% annual dividend increase.
We forecast EBITDA growth at a [compound annual growth rate] of 6-8% over 2025-30E and estimate a dividend yield of approximately 5% for 2026," analysts said.