Mubasher: Al Rajhi Capital have adjusted the target price (TP) for Yanbu National Petrochemicals (Yansab) to SAR 62.5 per share, according to a recent note published on Tuesday.

Yanbu National Petrochemicals’ (Yansab) financial results for the third quarter of 2017 came higher than the estimates of Al Rajhi Capital Research.

 “After two quarters of sub-optimal operating rates, Q3 saw a sharp surge in operating rate, translating to higher revenue and profits,” the report stated.

The research firm expects continued higher output in Q4-17, which is seasonally strong.

The stock continues to remain attractive given that the product prices are trading well below their past highs while feedstock costs are above past averages, the report indicated.

Next year is likely to witness strong numbers, as the company has turned into a net cash company at the end of Q2 and given limited capital expenditure needs.

“We believe it is only a matter of time before annual dividends increase to SAR 4 per share from current SAR 3 per share, which is a strong trigger for the stock.