A. SREENIVASA REDDY (ABU DHABI)
First Abu Dhabi Bank Securities equities research team has put a “buy” rating on 2PointZero Group, a holding company under the umbrella of International Holding Company.
2PointZero Group, listed on the Abu Dhabi Securities Exchange, was trading at Dh2.26 when the markets closed on Friday . FAB Securities analyst coverage puts a price target of Dh3.30, representing an upside of 47%.
2PointZero Group, which was formed after the merger of 2PointZero, Multiply Group, and Ghitha Holding, has a market cap of Dh78.1 billion.
In its initiation coverage, FAB Securities described 2PointZero as a “next-generation diversified investment platform” that offers investors exposure to a diversified portfolio of high-growth businesses and strategic investments.
The coverage initiation marks the first known analyst activity on the company, Bloomberg said in a report.
The FAB Securities research said the company has a presence across more than 85 countries and over 50 subsidiaries. It said 2PointZero is backed by strong institutional support, disciplined capital allocation and AI-led digital integration.
According to FAB Securities, the investment view is supported by four key factors: structural growth through strategic mergers and acquisitions and platform integration; leverage from Abu Dhabi’s ecosystem for capital and partnerships; active portfolio construction through targeted acquisitions and divestments; and strong financial performance with accelerating growth and expanding margins.
The research said 2PointZero has built a scaled and diversified investment platform by integrating consumer, energy, mining and financial services businesses. The company benefits from enhanced scale, synergies and portfolio resilience, positioning it to capture long-term growth across consumption and energy transition themes, FAB Securities said.
FAB Securities said 2PointZero’s integration within Abu Dhabi’s investment ecosystem provides access to patient capital, institutional partnerships and a robust deal pipeline, supporting efficient execution and global expansion. The company’s ability to recycle capital from mature assets into higher-growth opportunities supports capital efficiency and long-term net asset value growth, the report said.
The research also highlighted 2PointZero’s active portfolio strategy, citing its entry into retail through Tendam, expansion in mobility and electric vehicle infrastructure, and the acquisition of ISEM Packaging. It also pointed to the divestment of PAL Cooling as an example of capital recycling into higher-growth opportunities.
FAB Securities said the integration of portfolio companies is expected to drive operational efficiencies, procurement synergies and cross-selling opportunities, supporting earnings growth and margin expansion over the medium term.
On financial performance, FAB Securities said 2PointZero’s consolidated revenue rose from Dh1.7 billion in 2024 to Dh7 billion in 2025, driven by organic performance and contributions from strategic acquisitions. Adjusted EBITDA increased from Dh1.7 billion to Dh3 billion, while net profit rose from Dh0.2 billion to Dh3.6 billion, with margins expanding from 11.1% to 51.8% in 2025.
An IHC spokesperson told Bloomberg that analyst research remains fully independent and that the firm is engaging with local, regional and international financial institutions to expand coverage of its listed subsidiaries, with a goal of covering all public units by year-end.