Aljazira reaffirms Kayan’s ‘overweight’ rating; cuts TP to SAR 14.5

Aljazira Capital, the investment arm of Bank Aljazira, maintained its overweight recommendation for Saudi Kayan Petrochemical Company, and set a lower target price of SAR 14.5 per share for the stock.

Kayan’s losses for this year are expected to decline from SAR 837 million to SAR 665.9 million, because the company postponed fourth quarter’s scheduled maintenance to second quarter 2016. The scheduled repairs are seen to reduce sales by 25 percent for that period, Aljazira added.