Riyad Capital maintains ‘hold’ on Almarai, raises TP to SAR 81

Riyad Capital said it has maintained its “hold” rating on Almarai Co. and raised the firm’s share target price to SAR 81 from SAR 75 on expected growth in second quarter profit.

The brokerage firm said it projects the Saudi dairy and food producer’s profit to jump 22 percent to SAR 527 million during the period, driven partly by higher sales during the month of Ramadan, which begins later this week.

Despite raising the share target price, it added that the stock is traded higher than its fair value.

The stock trades at an E/V of 16.1 and EBITDA of 26.4, while the expected P/E ratio is 16.6.