Riyadh - Mubasher: Al Rajhi Capital has maintaited its “Neutral” rating for Herfy Food, and reduced the stock’s price target (PT) to SAR 57 down from SAR 60.6 per share, according to a recent report.
“Our target price implies 6.6% upside from the current market price and hence we maintain Neutral rating. Turnaround in sales is the key as better store capacity utilization will drive operating leverage, leading to higher net income growth rates and stock re-rating,” the research firm said in a statement on Sunday.
Herfy Food Services Company reported a drop in net profits by 12.3% year-on-year in the second quarter of 2017.
Net profits tumbled to SAR 43.4 million in Q2-17, from SAR 49.5 million in Q2-16, according to the company’s statement to the Saudi Stock Exchange (Tadawul) on Thursday.
