NCB Capital revises Al Tayyar TP to SAR 34.5 per share

NCB Capital has maintained an “Overweight” recommendation on Al Tayyar Travel Group Holding Co.’s stock, but increased the target price to SAR 34.5 per share, the brokerage firm said yesterday.

The target price increase came as NCB Cap didn’t take into account the Careem acquisition deal when it issued the recent valuation. In addition, Al Tayyar’s transportation and hospitality segments are expected to lift the stock price, going forward, it said.

Al Tayyar is expected to mainly use its income share from Careem deal to finance the expansion of its travel and hospitality divisions, it said.

NCB Capital added that Al Tayyar will likely distribute cash dividends as soon as Careem deal finalizes.

According to data compiled by Argaam, Al Tayyar said last month it expects to record SAR 1.78 billion in gross profit from the sale of its stake in Dubai-based ride-hailing firm Careem to Uber Technologies Inc.