Aljazira Capital maintained an “overweight” rating on Saudi Arabian Mining Co. (Maaden) and raised its target price on the stock to SAR 36.30 from SAR 30.24.
The recommendation was based on its expectation that Maaden is currently investing in its business and expansions plans, which are seen to contribute to “higher future growth in the core business by 2017”.
“The company is fundamentally stable and experiencing the effect of low demand due to a deceleration in global economic growth,” the ratings agency said in its report.
Last month, the mining company reported a Q3-2015 net profit of SAR 79.9 million, which fell 73 percent below a consensus estimate of SAR 294.5 million.
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