Falcom Financial Services maintained its “neutral” recommendation on Seera Group Holding, setting the target price at SAR 17.40 per share, it said in a research note issued on Monday.
The company’s transformation strategy continued to support its financial performance as online consumer travel grew 70 percent, it added.
“Seera is well-positioned to achieve the target of SAR 3 billion by the end of the year,” the consultancy said.
While the company’s focus remains on growing its market share and building its customer and supplier network, it further aims to tackle higher competition in the industry by investing in its omni-channel consumer offerings, digital travel management solutions for government, corporate travel solutions, and Hajj and Umrah products.
Seera posted a net profit of SAR 67 million in Q 2019, down 37.1 percent from SAR 107 million in the same period last year, weighed down by non-renewal of the Ministry of Education’s (MoE) contract and higher operating expenses.
“Although the company’s profit grew sequentially, it remains to be seen how it makes up for the non- renewal of the MoE contract,” the consultancy noted.
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