Itqan Cap says Yansab Q1 2021 performance strong, sets target price at SAR 75.50

Logo of Yanbu National Petrochemical Co.

Yanbu National Petrochemical Co. (Yansab) showed a significantly strong performance in Q1 2021, despite plants closure and higher feedstock prices, Itqan Capital said in a new report.

The company managed to report strong net income in the first quarter due to higher prices, improved volumetric sales and an increase in other income.

The brokerage believes that gradual improvement will continue in 2021 as prices stabilize. It expects a positive long-term outlook on the back of a pick-up in economic activities following vaccine rollout. However, prices will stabilize on the current levels in the short term.

Itqan Capital maintained its “Neutral” recommendation on the stock, setting the target price at SAR 75.50.