Riyadh-Mubasher: Al Rajhi Capital assigned Ma’aden an ‘Overweight’ rating, setting the price target at SAR 37.
Ma’aden reported net losses of SAR 5.6 million for the fourth quarter of 2015, which were significantly below Al Rajhi Capital’s estimate by a wide margin.
The company attributed the large miss to the increase in net loss of a subsidiary (most likely Sahara and Ma’aden Petrochemical), as well as falling commodity prices and other income.
Ma’aden’s operating performance came with mixed results, the research firm said.
While the company’s gross profit stood at SAR 534 million and in line with Al Rajhi Capital’s estimates of SAR 540 million, operating profit came much below forecast at SAR 181.5 million.
“We had expected high earnings volatility before as the company ramps up the operations of various subsidiaries,” the think tank said.
