NCB Cap downgrades Al-Othaim, eXtra; ups Yanbu Cement

25/04/2018 Argaam

 

NCB Capital has updated its valuations and forecasts for several Saudi-listed stocks under its coverage.

 

In the retailing sector, the brokerage firm downgraded Abdullah Al-Othaim Markets to "neutral" with a price target of SAR 79.3, as all the positives are priced in at current levels, NCB Capital said in a recent report.

 

"We also downgrade Extra to Underweight with a PT of SR66.7, as the valuations are rich and visibility remains largely unclear with the expected expat departure as of Q3 2018," the brokerage firm added.

 

Meanwhile, it maintained an "overweight" rating on Jarir Marketing Co., but upped the stock's target price to SAR 209.6 from SAR 168.30.

 

It also remained "neutral" on Fawaz Abdulaziz AlHokair and Al Hassan Ghazi Ibrahim Shaker.

 

In the food sector, Savola's rating was cut to "neutral", due to the weak retail business and unclear store expansion plans.

 

Yanbu Cement Co. was upgraded to "overweight", with a target price of SAR 37.0, thanks to its valuation discount, relatively better outlook due to its favorable location and the positive impact from the export contract signed.

 

NCB Capital resumed coverage on Dar Al Arkan Real Estate Development, upgrading the stock to "neutral", on the back of clarity on white land fees. The stock's target price was set at SAR 13.10.

 

NCBC Recommendations

Company

Recommendation

Target price (SAR/share)

Previous

New

Previous

New

Retail

Jarir

Overweight

Overweight

168.30

209.60

Alhokair

Neutral

Neutral

42.20

30.50

eXtra

Neutral

Underweight

32.10

66.70

Al Othaim

Overweight

Neutral

60.75

79.30

Shaker

Neutral

Neutral

13.80

11.10

Food

Savola

Overweight

Neutral

47.00

43.30

Almarai

Neutral

Neutral

42.20

53.20

Cement

Yanbu

Neutral

Overweight

40.80

37.00

Saudi

Neutral

Neutral

69.10

54.50

Qassim

Neutral

Neutral

59.70

46.00

Yamama

Neutral

Neutral

20.30

15.40

Southern

Neutral

Neutral

69.90

46.30

Arabian

Neutral

Neutral

41.70

36.70

Eastern

Neutral

Neutral

27.80

28.50

Real Estate

Dar Al Arkan

Under review

Neutral

Under review

13.10

Taiba

Neutral

Neutral

42.30

33.70

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