Aljazira Capital ‘neutral’ on SAFCO; TP at SAR 125.5

Aljazira Capital set the target price of Saudi Arabia Fertilizer Co.’s (SAFCO) to SAR 125.5 per share, with an upside of three percent on the current price, and maintained its “neutral” recommendation. 

SAFCO’s second quarter net profit came in 6.5 percent higher than expected as the company offset low sales prices by increasing volumes, said Aljazira Capital in an earnings note.

The investment bank expects the fertilizer company to maintain its sales growth in 2015 with the start of production from the SAFCO 5 project.