Al Rajhi Capital upgrades Maaden to ‘overweight;’ raises TP to SAR 52

Al Rajhi Capital said in a statement that it has revised its rating on Saudi Arabian Mining Co. (Maaden) to “overweight” from “hold” as it expected to see positive results from its aluminum smelter and Waad Al-Shamaal city development.

The brokerage firm also raised its target share price on the mining company to SAR 52 from SAR 41.

Maaden is currently positioned to benefit from Saudi Arabia’s mineral resources, including phosphates, gold and aluminum, Al Rajhi added in its review. Cheap feedstock is also an asset and provides the company with a competitive edge.

The company’s revenues are expected to reach SAR 15.7 billion in 2017, making it a favorable long-term investment, according to the investment arm of Al Rajhi Bank.