Arabian Internet and Communications Services, known as solutions, has been downgraded by United Securities due to increasing geopolitical risks in the Middle East that may affect the company’s short-term outlook.
United Securities lowered its rating on the stock from “strong buy” to “buy” and reduced the target price to SAR 210. Despite the downgrade, the new target still indicates potential upside from current market levels.
The brokerage also revised its financial forecasts for 2026, projecting revenue of around SAR 13.5 billion and net profit of approximately SAR 1.6 billion. These estimates sit near the lower end of the company’s own guidance.
The more cautious outlook follows mixed performance in 2025. The company reported revenue growth of 5.5 percent, reaching SAR 12.7 billion, while net profit declined 5.6 percent to SAR 1.5 billion, about 12 percent below United Securities’ earlier expectations.
Despite near-term challenges, the company remains a major player in Saudi Arabia’s IT services market with more than 20 percent market share. Analysts note that its continued focus on subscription-style contracts and recurring digital services could support long-term growth.
