Riyadh-Mubasher: Riyad Capital recommended 'Buy' on Jarir Marketing on Tuesday, setting the price target at SAR 140, a rise of 30% from the stock’s closing price on Sunday at SAR 107.76.
In a recent report, Jarir announced the distribution of cash dividends at SAR 3 a share, with earning per share amounting to 6%.
The expected price earnings ratio (P/E Ratio) retreated to an average level so that the share was traded for the whole year at an expected P/E Ratio of 12.7 times, despite the pressure of sales and margins.
Lower consumer spending was expected to negatively affect the company which consequently led to the fall of the share. The share’s performance was lower 23% of the main index’s level, Riyad Capital said.
Jarir has announced its plan to open from 6 to 7 branches during the current year, which represents a challenge amid lower sales that pressured the margins.
