Leejam Sports Co. headquarters
Leejam Sports Co.'s (Fitness Time) Q1 2021 loss of SAR 7 million came below Al Rajhi Capital's estimates of SAR 11 million.
The increase in COVID-19 infections may lead to the decline in the number of new subscribers, which will likely impact the stock's earnings per share (EPS) in 2021, the research firm said in a recent report.
Al Rajhi Capital stated that it is still optimistic on the long-term story of Leejam, due to the launch of the low-cost Xpress fitness centers, which would help improve returns.
However, the brokerage lowered Leejam’s rating to “Neutral”, reducing the target price to SAR 76 a share.
According to the report, the downgrade risks are potential lockdown due to the increase in COVID-19 cases, which would impact the company's revenues, in addition to the fierce competition for the fitness applications and other clubs in the region.
Argaam Investment Company has updated the Privacy Policy of its services and digital platforms. Know more about our Privacy Policy here.
Argaam uses cookies to personalize content, to provide social media features and analyze traffic, that we might also share with third parties. You consent to our cookies if you use this website
Comments {{getCommentCount()}}
Be the first to comment
رد{{comment.DisplayName}} على {{getCommenterName(comment.ParentThreadID)}}
{{comment.DisplayName}}
{{comment.ElapsedTime}}