Aljazira Capital remains ‘neutral’ on Jabal Omar; sets TP at SAR 71.50

Aljazira Capital, the investment arm of Aljazira Bank, maintained its neutral recommendation on Jabal Omar Development Company and set a target price of SAR 71.50 per share.

The brokerage firm added that the company’s negative working capital is not a concern, since it’s a normal phase for any fast-growing entity.

Aljazira expects the property developer to record revenue of SAR 1.12 billion in 2015, as well as a net profit of SAR 501 million for the same period.

For the six months ending April 19, Jabal Omar reported a net profit of SAR 224.7 million, compared to a net loss of SAR 3 million for the same period in 2014.

A recent report issued by the Saudi Justice Ministry indicated that the value of real estate deals in the kingdom declined 15 percent to SAR 243.6 billion in the first seven months of the lunar hijri calendar of 1436 (through mid-May 2015), compared with the same period last year, according to data compiled by Argaam.