Saudi Fransi Capital has upheld its “buy” rating on Savola, one of the Middle East’s largest food conglomerates.
The recommendation comes on the back of the company’s first quarter results which beat estimates.
The Tadawul-listed industrial group is forecast to maintain its current growth rates. Net profit is expected to grow at a CAGR rate of 15 percent between 2014 and next year, largely driven by growth of its retail operations, as well as its affiliate Almarai Co.
The brokerage firm set Savola’s target price at SAR 89.
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