NCB capital keeps ‘overweight’ rating on Savola; Almarai remains ‘neutral’

NCB Capital said it has maintained its “overweight” rating for Savola Group, with a target price of SAR 89.1 per share, given its strong retail sector and its planned expansion.

On Almarai, NCB kept its “neutral” outlook with a target price of SAR 81.2 per share, due to a positive outlook on the poultry, juices, and dairy sector.

NCB said it still prefers Savola over Almarai based on attractive valuations, and the positive outlook of Savola’s business sectors. Meanwhile, the fall in the prices of commodities is also expected to boost the margins of both companies, it added.