Al-Rajhi Capital has stated that Savola’s Q1-14 financial results missed its estimates, as the gross and operating profits were lower than expectations, even though the net profit beat forecasts by a wide margin.
The company delivered strong bottom-line performance despite the political tension in Egypt and economic troubles in Iran & Sudan.
Going forward, Savola has provided a net profit guidance of SAR 410 million (+5.7% y/y) for Q2.
Al-Rajhi had a ‘Neutral’ rating on Savola, with a target price of SAR 62, but the stock has run up sharply over the last couple of months.
For now, the research firm put the rating and target price on Savola “Under Review”.
The company delivered strong bottom-line performance despite the political tension in Egypt and economic troubles in Iran & Sudan.
Going forward, Savola has provided a net profit guidance of SAR 410 million (+5.7% y/y) for Q2.
Al-Rajhi had a ‘Neutral’ rating on Savola, with a target price of SAR 62, but the stock has run up sharply over the last couple of months.
For now, the research firm put the rating and target price on Savola “Under Review”.
Source:
Mubasher
