GIB Capital sets ratings, TPs for Theeb, Budget Saudi, Lumi

GIB Capital sets its recommendations and target prices (TPs) for Theeb Rent a Car, United International Transportation Co. (Budget Saudi), and Lumi Rental Co.

According to the brokerage, total revenues of the companies under coverage are expected to grow at a compound annual growth rate (CAGR) of 12% from 2024 to 2028. Meanwhile, combined profits are projected to grow at a CAGR of 17% over the same period, supported by margin expansion.

GIB Capital expressed optimism about the three car rental companies, expecting Budget Saudi to post strong revenue growth of 21% year-on-year (YoY) in 2025, mainly driven by its acquisition of Al-Jazeera Equipment Co. (AutoWorld). Meanwhile, Theeb and Lumi's revenues are forecast to grow by 13% and 7%, respectively, in 2025.

The brokerage maintained its “Overweight” rating for the three companies. It kept the TP for Theeb at SAR 88, while it lowered the TP for Lumi from SAR 85 to SAR 76, and Budget Saudi from SAR 91 to SAR 88, as follows: