Riyad Cap says stc Q1 2021 profit in-line with estimates, raises TP to SAR 115

stc’s Q1 20201 net profit of SAR 2.9 billion came in-line with Riyad Capital’s estimates of SAR 2.8 billion, but higher than market estimates of SAR 2.7 billion.

Higher consumer unit revenues supported the topline growth. Enterprise unit revenues rose 33% on the back of higher demand for the company’s services and products, while wholesale segment revenues increased 5%.

The brokerage maintained its “Neutral” recommendation on stc, raising the target price to SAR 115 per share.

The “Neutral” recommendation means that the total expected returns will be between +15% and -15%.