Riyadh – Mubasher: NCB Capital (NCBC) and Al Rajhi Capital said that the results of Jarir Marketing for the first quarter of 2017 were better than expected and revenues witnessed unexpected growth.

NCBC set the price target (PT) at SAR 142.6, with an “Overweight” recommendation, while Al Rajhi set the PT at SAR 145.8, with a “Neutral” recommendation.

Jarir’s Q1 profits worth SAR 221.4 million beat its estimates of SAR 179.5 million and the consensus’ expectations of SAR 180 million, NCBC noted.

The research firm added that Jarir’s realised revenues in Q1 reached SAR 1.71 billion and came higher than the estimates of SAR 1.45 billion, expecting the stock to trade at a price-earnings (P/E) ratio of 16.3x in 2017.

Moreover, Al Rajhi Capital said that the stock is one of the highest dividend yielding stocks on the Saudi Stock Exchange (Tadawul) and hence, provides a cushion against any short- or medium-term downside triggers, expecting it to distribute SAR 8.1 dividends per share.

“Jarir is an attractive investment opportunity at the current market price,” Al Rajhi Capital said.

The Saudi-listed company had announced a 26.51% increase in profits to SAR 221.4 million in Q1-17, compared to SAR 175 million in Q1-16.