Riyadh – Mubasher: Al Rajhi Capital has reduced the target price (TP) of the Tadawul-listed company Almarai Company to SAR 50 per share from SAR 51, with ‘Neutral’ recommendation, according to report released on Wednesday.
The report expects Almarai’s revenue to grow by 7% year-on-year in 2020, pushed up by the stable growth in dairy and juice segment, along with double-digit growth in the poultry segment.
“The overall consumer sentiments have picked up for the second half of 2019 and should continue to remain positive in 2020. Some recent developments such as change in sugar formula for fruit juice, launching of long life juices and price rationalisation in juice segments should bring much-needed respite in the juice segment growth,” Al Rajhi Capital said.
It is worth noting that Almarai reported a 9.95% decline in net profits after zakat and tax last year to a total of SAR 1.811 billion in 2019, compared with SAR 2.012 billion in 2018.
