The ratings agency also set its target price for the stock at SAR 195.
The recommendation was based on the catering services provider’s clean balance sheet, higher margins, robust cash
,
and lower capital expenditures.
Based on the fundamentals, the investment bank said the company is well-positioned, factoring in an expansion of airline fleets in the kingdom, as well as a higher number of pilgrims expected this year.
Al Rajhi Capital added that it forecasts a 16 percent year-on-year rise in revenue for Saudi Catering. Net profit is expected to jump 13 percent during the period, while earnings per share is estimated to hit SAR 7.25.
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