Al-Rajhi Capital keeps ‘overweight’ ratings on SABIC, STC

Al-Rajhi Capital has issued rating reports covering several Saudi companies including Saudi Basic Industries Corp. (SABIC), Saudi Telecom Co. (STC), Etihad Etisalat Co. (Mobily), and Mobile Telecommunications Co. (Zain Saudi).

According to its statements, the investment firm maintained an “overweight” rating on SABIC and kept the stock’s target price at SAR 106.10. It also upheld an “overweight” position on STC, but upgraded its target price to SAR 80.

Al-Rajhi Capital also kept its “underweight” rating on Zain Saudi with its share price set at SAR 10. Mobily’s rating is still under review.

The firm said that higher oil prices have not yet taken a toll yet on the kingdom’s petrochemicals sector. It also shared a positive outlook for the country’s cement sector, which it expects to witness a recovery in demand within the second quarter of this year.

Meanwhile, the retail sector is expected to capitalize on the two-month salary bonus. In addition, the food industries sector is forecast to report higher sales, fuelled by the holy month of Ramadan.