Mubasher TV
Contact Us Advertising   العربية

Al Rajhi Capital sets TP of Savola at SAR 30

Al Rajhi Capital sets TP of Savola at SAR 30
The company faces structural headwinds
2.23% 43.55 0.95

Riyadh – Mubasher: Al Rajhi Capital has set the target price of the Tadawul-listed company Savola Group at SAR 30, with a ‘Neutral’ recommendation.

The research firm based its decision on Savola’s loss of market share and the closure of some of its stores, along with challenges facing the food business, according to a statement released on Wednesday.

“Due to diverse nature of its business, the company always faces structural headwinds from volatile commodity and currency movements as well as the risk of intermittent impairments and one-off provisions which might adversely impact the profitability of the company,” Al Rajhi commented.

Savola Group’s net profits after zakat and tax plunged by 21.6% year-on-year to SAR 110.2 million during the second quarter of 2019.