Riyadh- Mubasher: Aljazira Capital reiterated its overweight recommendation on Saudi Kayan Petrochemical Co. with a price target of SAR 8.80/share indicating a potential upside of 24.8%.
The research unit said it expects that Kayan to post net income of SAR 401.8 million (SAR 0.27 EPS) for 2016, as compared to a net loss of SAR 1,243 million in 2015.
Aljazira Capital attributed its expectations to a technical issues during the scheduled maintenance in 2015.
Kayan’s stocks are trading at a forward PE and P/B of 11.6x and 0.75x respectively based on Aljazira Capital 2017 earnings forecast, which is lower than the current multiple of the petrochemical sector.
