Riyadh – Mubasher: Al Rajhi Capital expects a healthy run rate in Jarir Marketing’s current environment which is backed by market share gains in the company’s mobiles and electronics segment, according to a recent report.

Al Rajhi forecasts this segment to continue with its healthy growth in the next few quarters, both due to aggressive stores roll-outs by Jarir as well as weaker players exiting in the business.

Jarir is expected to build six new stores in 2017, and another five in 2018, Al Rajhi’s report added.

Jarir’s profits in the second quarter of 2017 came lower than Al Rajhi’s estimates of SAR 170 million.

The research company has made marginal adjustments to its estimates for Jarir’s target price to stand at SAR 145.0 per share instead of SAR 145.8. 

Al Rajhi said that their target price implies 4.9% downside from the current market price, keeping their recommendation “Neutral” on the stock.