Saudi Fransi Cap cuts Savola TP to SAR 86 on profit miss

Saudi Fransi Capital cut Savola’s target price to SAR 86 from SAR 89 per share, but maintained a "buy" rating on the stock, after the food conglomerate reported a Q2 net profit of SAR 434 million, six percent below the brokerage firm’s forecast.

Despite cutting its full-year guidance, Savola is expected to generate SAR 1.62 billion in net profit in 2015, which seems reasonable, given the potential improvement in the company's retail segment, the report said.