Alistithmar Capital maintains ‘neutral’ on Advanced; ups TP to SAR 60

Alistithmar Capital said it has maintained its “neutral” recommendation on Advanced Petrochemical Company and raised its target price to SAR 60 from SAR 43 per share, saying the petrochemical producer’s second quarter net profit exceeded expectations.

Alistithmar said the high profit margin for Advanced will continue as the current and projected oil prices will lower feedstock prices, while global demand for polypropylene will maintain product prices at the current level.

The investment firm attributed the higher-than-expected profit to operational efficiency at the company.