Alef Education Maintained at Buy as FAB Notes Q2 Earnings

06:07 AM EDT, 08/13/2026 (MT Newswires) -- FAB Securities maintained its buy rating on Alef Education (ADX:ALEFEDT), with a price target of 1.45 Emirati dirhams, following the release of the company's second-quarter earnings. "Alef Education's 2Q26 performance was driven by the ADEK partnership, B2G and B2B growth, disciplined cost control, and the start of private schools' revenue recognition. The Company reported improvement in profitability, with EBITDA margin of 75.0% and net profit margin of 65.4% in 2Q26, reflecting effective cost optimization and operating leverage. Alef Education continues to benefit from strong revenue visibility under its long-term ADEK agreement, which provides contractual coverage through 2033 and supports stable revenue," analysts wrote in a first look note published Thursday. For the three-month period, the K-12 education technology company logged a 1.1% year-over-year growth in net profit to 118 million Emirati dirhams, in line with FAB's forecast of 122 million dirhams. Revenue rose 1.8% annually to 181 million dirhams, against the research firm's 186 million-dirham forecast. "Company also guided for 4.0% YOY growth in both EBITDA and net profit in 2026, with EBITDA margins expected to remain above 68% and net profit margins above 60%, supported by cost discipline and revenue growth, subject to tax, interest, and depreciation impacts from new product launches," FAB added.