Riyadh – Mubasher: NCB Capital (NCBC) set the price target (PT) of Saudi Basic Industries Corp (SABIC) at SAR 90, with a “Neutral” recommendation.

The Saudi-listed firm’s results of SAR 5.24 billion came in line with the consensus estimate of SAR 5.4 billion.

“Higher operational efficiency, a strong balance sheet, and an attractive dividend yield of 5% are the key strengths of the stock,” the report said.

NCBC said that the stock is trading at a price-earnings (P/E) ratio of 15.6x, lower than the sector average of 16.6x.

SABIC achieved a net profit of SAR 5.24 billion during the first quarter of 2017, compared with SAR 2.91 billion in the same period of 2016; a year-on-year increase of 80%.