Aljazira Capital upgrades Budget Saudi to ‘overweight’

Aljazira Capital has upgraded the rating of Budget Saudi Arabia, also known as United International Transportation, to “overweight” with a positive outlook on expected higher revenue and expansion in South Asia, with focus on India.

“Budget is trading at a discount of 12.2 percent against our revised 12-month price target of SAR 64.6,” the firm added.

The company is expected to post a 10.4 percent increase in earnings to SAR 189.2 million in 2015, and revenue is expected to grow 9.2 percent to SAR 853.1 million on the back of growth in fleet size and logistics business, according to Aljazira, the investment arm of Aljazira Bank.