Riyadh - Mubasher: Al Rajhi Capital maintained their rating and price target (PT) for three Saudi petrochemical companies, according to a recent report.

The research firm lowered SAFCO’s to SAR 62, and set Sipchem’s at SAR 20.4, while SABIC, Yansab, and Advanced Petrochemical kept their values at SAR 97, SAR 58, and SAR 46, respectively.

Saudi Aramco has lowered the propane price for March to $480 per tonne, after increasing it to the highest level in more than two years in February, the report indicated.

“While we reiterate our ratings and target prices for most of the companies under our coverage, we put Tasnee under review post its announcement of plan of sale of Cristal assets,” Al Rajhi stated.

“We also upgrade Sipchem to Overweight after a recent decline in stock price. Apart from Sipchem, most of the companies are currently trading at around their fair prices in our view. We see limited upside potential unless product prices and/or spread rise further,” the report added.