Riyadh-Mubasher: AlJazira Capital initiated coverage on Al-Tayyar Travel Group, assigning the stock an 'Overweight' rating and setting the price target at SAR 100.6.

The rating reflects the research firm's positive outlook for both company and sector.

"Al-Tayyar is one of our top picks in the Saudi market for capitalizing on the rising potential of religious tourism in the kingdom," AlJazira said.

Al Tayyar trades at a FY15E P/E of 11.6x and a forward FY2016 PE of 10.4x.

The research firm believes Al Tayyar is currently trading at a discount compared to sector and market multiples, average PE of the sector stands at around 21x.

Al Tayyar’s attractive valuation is supported by low forward multiples, growth potential relative to its size as well as healthy cash flows and dividends outlook.