SABIC's Q2 profit beats forecasts: Aljazira Capital

Saudi Basic Industries Corp.’s (SABIC) Q2 net profit of SAR 6.17 billion beats Aljazira Capital forecasts as well as consensus estimates, the brokerage firm said in a report.

The investment arm of Bank Aljazira reiterated its "overweight" rating on the stock and set a target price at SAR 110.

The petrochemical producer's profit was attributed to higher average selling prices, higher production and sales volumes.

The brokerage also highlighted the long-term positive impact of the company's potential investment in the US oil shale industry as the right long-term strategy to mitigate oil price fluctuations risks.

Strong balance sheet, attractive dividend yield and reasonable valuations make SABIC an attractive bet, Aljazira added.