Itqan Cap raises Jarir rating to 'Overweight', sets target price at SAR 215

Itqan Capital revised its recommendation for Jarir Marketing Co. (Jarir) to "Overweight" from "Neutral", setting the target price at SAR 215 per share.

The Saudi-listed firm reported growth in smartphones and laptop sales in Q1 2021, leading to an impressive increase in market share, thanks to its e-commerce platforms.

The brokerage noted that Jarir's continued expansion is expected to support revenues in 2021; however, pressure on margins is expected to continue towards the year-end.

Moreover, the financial impact of the new stores opened in the first quarter will be reflected in Q2 2021.

According to the report, the growth in sales is merely due to the localized spending within the Kingdom as travel restrictions are still in place.

However, with the rapid COVID-19 vaccine rollout within the region, sales are expected to flatten out in H2 2021, Itqan Capital concluded.