Aljazira begins coverage of Al Tayyar with ‘overweight’ rating, TP of SAR 100.60

Aljazira Capital has initiated coverage of Al Tayyar Travel Group Holding Co. with an “overweight” rating and a target price of SAR 100.60 per share.

The travel group is one of the best options in the market as it benefits from investment opportunities in religious tourism within the kingdom, the brokerage said.

Al Tayyar Group is looking at external expansions and foreign acquisitions which, on the long run, will enhance its growth, Aljazira Capital added.

The brokerage firm expects a 19.6 percent and 15 percent growth in Al Tayyar’s revenue and net profit respectively by end-2015. Its strong financial position and cash flow will help keep its dividend at a constant rate in 2015 and 2016.