Riyadh – Mubasher: Riyad Capital expects that Almarai’s profits will increase 6% to reach SAR 668 million ($178.13 million) in the second quarter of 2017, which will help it reach SAR 2.12 billion during 2017.
In a report, Riyad Capital forecast that Almarai’s revenues will amount to SAR 4.3 million in Q2-17, to reach SAR 15.65 million by the end of 2017, due to the strong performance in Q2-17 which coincided with Ramadan.
Fresh milk is expected to remain a strong contributor to higher revenues, while bakery goods and poultry are expected to support the increase on an annual basis, the research firm noted.
Riyad Capital set the price target (PT) of Almarai’s stock at SAR 61 during twelve months, in line with a “Neutral” recommendation due to the instability in the stock’s price.
The Saudi research company expected that the stock will be traded at a price-earnings ratio of 31.1 times in 2017, compared to 14.4 times for the main index, with a dividend yield of less than 1.5%.
