Aljazira maintains Almarai’s ‘neutral’ rating

Aljazira Capital reiterated its neutral recommendation on Almarai Co. and raised the stock’s target price to SAR 82.40.

The firm said it sees the kingdom’s top dairy producer making higher sales and cash flows from poultry, which are set to break even this year.

The company’s plans to move its Jeddah bakeries to Rabigh are forecasted to boost production capacity and growth rates, Aljazira said.

The dairy and poultry producer is also forecasted to generate earnings of SAR 1,779 million this year, jumping 7.6 percent year-on-year. Almarai’s profit is also seen to exceed SAR 2 billion in 2018.

Moreover, Aljazira Capital kept an overweight rating on Al-Jouf Agriculture Development Co. and cut the stock target price to SAR 50.60.

The research firm remained neutral on Halwani Brothers Co. , and hiked the stock target price to SAR 84.60.

Aljazira said it holds a positive outlook for the Saudi agriculture and food sector, given the ongoing diversification policies, which capitalized on the local expansions and economic conditions.