Riyad Capital has maintained its “buy” ratings on Bawan Co., The National Company for Glass Industries (Zoujaj) and Saudi Arabian Amiantit Co. (Amiantit), and left the stocks' target prices unchanged.
The recommendations were based on the expectation that the building materials sector will continue to see investment opportunities despite slower growth.
The investment arm of Riyad Bank kept its “buy” recommnedation on Saudi Ceramic Co., but cut its target price to SAR 54 from SAR 64.
The brokage firm also maintained a “hold” rating on United Wire Factories Co. (Aslak), and left its target price unchanged.
As for earnings estimates for Q1-2016, Aslak is projected to see a 15 percent growth year-on-year (YoY) in net profit to SAR 16 million.
The other four firms under coverage were projected to see profit declines. Industrial group Bawan is expected to record the steepest drop in profit of 34 percent YoY on lower sales prices.
Zoujaj and Saudi Ceramic followed with estimated profit declines of 14 percent and 12 percent YoY, respectively, in Q1. Amiantit is forecast to see its first-quarter profit fall 11 percent over the same period.
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Riyad Capital's Recommendations |
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Company |
Recommendation |
Target price (SAR) |
|
Saudi Ceramic |
54.00 |
Buy |
|
Bawan |
21.00 |
Buy |
|
Aslak |
17.00 |
Hold |
|
Zoujaj |
23.00 |
Buy |
|
Amiantit |
8.50 |
Buy |
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