Riyadh – Mubasher: Al Jazira Capital raised the target price (TP) of Arabian Cement Company to SAR 31.7 per share and revised its recommendation to “Overweight”.

Selling price amounted to SAR 220 per tonne against Al Jazira’s estimations of SAR 184.8 per tonne, the kingdom-based research firm said in a recent report.

Arabian Cement revealed turning to a profit during the first quarter of 2019, recording a net profit worth SAR 37.1 million, against SAR 6.1 million in net losses in Q1-18.

The company’s net income exceeded Al Jazira’s expectation of SAR 7.3 million, reaching SAR 37.1 million during the first three months of 2019.

“We believe that the company’s sales volumes will gradually improve over the coming years given the mega projects in the western region,” the report said.

The research company noted that selling price is expected to sustain the high level in the full-year 2019.

“Arabian cement is expected to post SAR 152.4mn in net income (1.52 EPS), for FY19,” Al Jazira Capital added.