Riyadh-Mubasher: AlJazira Capital recommended 'Overweight' on Saudi Airlines Catering, setting the price target at SAR 141.1 ($37.62), with upside potential of 38.7% to the current price of SAR 101.75 ($27.13).
The company posted earnings of SAR 190.7 million ($50.85 million) for the fourth quarter of 2015, against SAR 172.8 million ($46.07 million) in the same period a year ago, a rise of 10.37%.
The net income growth was fuelled by a 3.9% rise in total revenues and a 6.8% fall in cost.
Major growth of 50% year-on-year was seen in revenues from business lounge, the research firm said.
In-flight revenues showed growth of 0.6% year-on-year in Q4-15, while skysales revenue improved by 19.0%.
