Seera to post FY19 lower profits on weaker market: Aljazira Capital

Aljazira Capital said in a research note that it expects Seera Holding’s profits to decrease due to the non renewal of the contract with the Ministry of Education, along with a weaker market.

“The company has a plan to achieve limited revenue of about SAR 3 billion during the financial year 2019, boosted by online sales,” the note said.

“Consumer demand is also expected to grow starting from 2020, and Seera should use income from selling its stake at ‘Careem’ to support its core business and increase its market share,” it further said.

Furthermore, Aljazira Capital noted that slashing visa fees will benefit Seera Holding, expecting profit margins to improve next year with the stabilization of retail markets.

Therefore, Aljazira Capital set an “Overweight” recommendation for Seera with a target price of SAR 18.5.