Falcom maintains ‘neutral’ on Bahri, raises TP to SAR 39

Falcom Financial Services retained its “neutral” rating on National Shipping Company of Saudi Arabia (Bahri), but revised the target price higher to SAR 39 from SAR 38 a share.

The shipping major’s financial performance improved in Q2 2020 largely due to the tanker segment, as transportation rates remained high for most of the quarter owing to lower oil prices, the brokerage firm said in a report.

Going forward, Bahri is expected to report stable revenues for the year, despite COVID-19 even though oil demand is anticipated to remain low.

Falcom’s neutral recommendation means the fair value is either more or less than the current share price by 10%.