SICO names SNB, SABB, Jarir among top 5 picks, recommends ‘buy’

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SICO Bank named Saudi National Bank (SNB), Saudi British Bank (SABB), Jarir Marketing Co., Saudi Ceramic Co.  and Leejam Sports Co. (Fitness Time) as top Saudi stocks, recommending “buy” ratings.

The bank expects SNB’s growth over the coming two years to attract huge investments, forecasting the bank’s loan portfolio to rise 13% in 2022, while corporate, consumer and mortgages are seen to record strong performance.

SNB could capitalize on loan-growth opportunities in the Kingdom’s megaprojects and “Shareek” program, SICO said in a report.

On the other hand, SABB has a strong business plan for the coming two years. The bank is well-positioned to leverage on rising demand from corporations, as well as higher interest rates.

SICO expected SABB credit portfolio to grow 10% on average over the coming two years.

Saudi Ceramic is projected is projected to see improved pricing as a result of demand recovery, thanks to the anti-dumping duty.

Elsewhere, Jarir’s robust cash flows and limited capital expenditure give ample room for richer dividends over the coming quarters.

Jarir is forecast to capitalize on higher-margin stationery sales, representing 15-20% of the company’s gross sales, the bank indicated, adding that the company eyes more store expansions in the GCC countries.

Leejam’s profit margins, meanwhile, exceeded the pre-COVID levels, backed by stronger operations thanks to improved operating conditions.

The sports facility operator seeks to expand foothold in 28 cities across the Kingdom.