AlJazira Cap remain positive for Seera; upgrades rating to ‘Overweight’

Logo of Seera

AlJazira Capital remains positive about the long-term prospects of Seera Group Holding owing to rebound in the travel and tourism industry post the pandemic.

The brokerage firm said in an earnings review that the demand for the tourism sector will gradually recover with the availability of the vaccine, benefitting Seera.

The short-term outlook is uncertain; although vaccination drives have commenced globally, the programs face logistical challenges. Moreover, the long-term effectiveness of the vaccines is not yet established. Several countries are witnessing second wave of infection, which is impacting the overall travel demand. These factors make the near-term outlook uncertain.

Seera implemented several policies to mitigate the current situation, including lowering operating expenses and reviewing budgets allocated to each segment.

As international travel restrictions are still in place, the company plans to focus on domestic tourism to grow its revenue.

Seera is expected to achieve a net income of SAR 253 million and SAR 204 million in 2021 and 2022, respectively.

AlJazira Capital upgraded its recommendation on Seera to ‘Overweight’ from ‘Neutral’ and raised the share target price (TP) to SAR 21 from SAR 17.40.