Riyadh-Mubasher: Albilad Capital assigned Herfy Food Services an ‘Overweight’ rating, setting the fair value at SAR 116.
The research firm said Herfy’s Q4 earnings of SAR 45.2 million fell behind its forecast of SAR 56 million.
Albilad Capital lowered its profit margin forecast for the next five years after the company announced that the financial impact from the government’s decision to raise energy prices was estimated at nearly SAR 10 million.
Herfy’s revenues and net profits are expected to reach SAR 1184.6 million and SAR 223.9 million, respectively in 2016, the think tank said.
Herfy reported net earnings of SAR 45.2 million for the fourth quarter of 2015, down 7% from SAR 48.6 million in the prior-year period.
