BofA initiates Saudi Aramco coverage with “Neutral” rating; sets TP at SAR 36

BofA Global Research started its coverage of state oil giant Saudi Aramco’s shares with a “Neutral” recommendation and a target price (TP) of SAR 36 per share.

“Saudi Aramco is unique. In terms of quality of assets, scale and profitability, it dwarfs just about any company globally," BofA said in a note.

“Yet, at current valuations, most of the outstanding fundamental factors are already priced in,” it further added.

The research unit of Bank of America Merrill Lynch joins the growing number of brokerages who have initiated their coverage for Saudi Aramco after its $29.4 billion stock floatation in December last year.

JPMorgan initiated coverage on Saudi Aramco with an “Overweight” rating with a TP of SAR 37 while HSBC gave a “Hold” rating with a TP of SAR 36.80.