Riyad Capital reinstates coverage of Tasnee with “Neutral” recommendation

Riyad Capital reinstated the coverage Tasnee with a “Neutral” recommendation and target price of SAR 15.

The brokerage firm expected Tasnee to post a net profit of SAR 790 million in 2019, and SAR 424 million in 2020.

It also noted that Tasnee’s performance will mainly be driven by petrochemical activities following the sales of TiO2 business to Tronox.

Tasnee’s profits will remain affected by TiO2 prices as it maintains a stake in Tronox, the note said.

Riyad Capital also said that operational costs at Tasnee are high, mainly administrative as compared to its peers.