Al-Rajhi Capital maintains 'Neutral' for Jarir [Mubasher (Saudi Arabia)]
(Mubasher (Saudi Arabia) Via Acquire Media NewsEdge) Jarir Marketing Co. continues to outperform the overall market as it has
generated about 24% YTD return. The company's strong performance has
been despite its slower revenue growth witnessed in the first quarter,
according to a report by Al-Rajhi Capital.
The research firm met with the company management recently to get a
clearer picture of the company's future potential and risks. The company
has embarked on an aggressive expansion strategy with plans to almost
double its store count by 2018, after adding only four stores between
2010 and 2013.
With the increasing penetration of smart phones and electronic gadgets,
the company is witnessing a slowing same store sales growth, which the
management is trying to address through various measures.
The report issuer believes the stock deserves a premium over its peers
due to its high growth potential, consistent performance and customer
Al-Rajhi Capital's fair value target price of SAR 206 per share for
Jarir is only marginally above the current market price, and hence the
research firm maintained its 'Neutral' rating.
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