United International Transportation Co.’s (Budget Saudi) Q2 2020 net profit of SAR 22.6 million came in line with Aljazira Capital’s estimate of SAR 20.4 million, the brokerage firm said in a report.
The decline in net income was due to a steep fall in revenue and the subsequent contraction of the operating margin due to the pandemic-led lockdown.
Aljazira Capital expects Budget Saudi’s earnings to remain under pressure in Q3 2020 but may see some recovery in Q4 2020.
The brokerage maintained its “Neutral” recommendation on the company’s stock, increasing the target price to SAR 30 from SAR 27.20 a share.
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