NCB Capital has added 12 Tadawul-listed companies and the Riyad real estate traded fund (Riyad REIT) to its preferred stocks, in light of weak oil prices and their impact on the economy, the brokerage said in a market review.
The brokerage has categorized its preferred stocks in three bundles that should give investors seeking sustainable returns and profit growth or both, a clear idea about the best investments.
The first bundle of stocks includes Advanced Petrochemical Co., Jarir, STC, Saudi Airlines Catering, SGS, Arriyadh Development Co. and Riyad REIT. They were chosen based on their attractive and sustainable dividends, and the general projection of each company’s growth.
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NCB Capital’s Preferred Stocks |
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|
Company |
Recommendation |
Target price (SAR/share) |
||
|
Previous |
New |
Previous |
New |
|
|
Advanced |
Neutral |
Overweight |
42.8 |
42.8 |
|
Jarir |
Overweight |
Overweight |
168.3 |
168.3 |
|
STC |
Overweight |
Neutral |
68.9 |
72.1 |
|
Catering |
Overweight |
Overweight |
103.4 |
103.4 |
|
SGS |
Overweight |
Overweight |
60.8 |
60.8 |
|
Arriyadh Development |
Not covered |
Not covered |
Not covered |
Not covered |
|
Riyad REIT |
Not covered |
Not covered |
Not covered |
Not covered |
The second list includes six companies based on their expected profit growth, sector forecasts, and better assessments when compared to their peers, such as Al Othaim Markets, Al Tayyar Travel Group, and Saudi German Hospitals.
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Growth Stocks |
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Company |
Recommendation |
Target price (SAR/share) |
||
|
Previous |
New |
Previous |
New |
|
|
Al Othaim |
Overweight |
Overweight |
111.30 |
121.5 |
|
Al Tayyar |
Overweight |
Overweight |
40.0 |
40.0 |
|
Saudi German Hospitals |
Overweight |
Overweight |
95.3 |
95.3 |
|
Farm Superstores* |
Not covered |
Not covered |
-- |
33.5 |
|
SACO* |
Not covered |
Not covered |
-- |
106.0 |
|
SADAFCO* |
Not covered |
Not covered |
-- |
148.3 |
* Target price is based on consensus estimates by local brokerage firms
The third bundle includes companies that project a mix of growth and good dividends.
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Mixed Stocks |
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Company |
Recommendation |
Target price (SAR/share) |
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|
Previous |
New |
Previous |
New |
|
|
Al Othaim |
Overweight |
Overweight |
111.30 |
121.5 |
|
STC |
Overweight |
Neutral |
68.9 |
72.1 |
|
Catering |
Overweight |
Overweight |
103.4 |
103.4 |
|
SGS |
Overweight |
Overweight |
60.8 |
60.8 |
|
SADAFCO |
Not covered |
Not covered |
-- |
148.3 |
|
Arriyadh Development |
Not covered |
Not covered |
Not covered |
Not covered |
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