Arab Today, arab today extra shaker get overweight rating
Last Updated : GMT 20:51:32
Arab Today, arab today
Arab Today, arab today

eXtra, Shaker get Overweight rating

Arab Today, arab today

Arab Today, arab today eXtra, Shaker get Overweight rating

Riyadh - Arabstoday

NCB Capital initiated coverage on eXtra with an Overweight rating and price target of SR 106.2 (upside of 26 percent) and on Al Hassan Ghazi Ibrahim Shaker Co. with an Overweight rating and price target of SR 82.5 (upside of 19 percent). In its new report issued yesterday, NCB Capital believes the market leading position of both firms will enable them to take advantage of the strong outlook for each of their respective sectors. Growth through higher volumes and sales outside of Saudi Arabia are further catalysts. “We start coverage on eXtra with an Overweight rating and PT of SR 106.2, indicating an upside potential of 26 percent. Key positives for the stock include its market leading position in electronics retail, its wide array of products it sells leading to limited volatility in sales and its strong balance sheet enabling it to quickly take advantage of the market opportunities,” said Farouk Miah, head of equity research at NCB Capital. “Key concerns on the stock include potential margin pressure from price-based competition, ability to successfully execute its aggressive expansion plans and any slowdown in consumer spending which will potentially hurt demand for electronics.” NCB Capital also initiated coverage on Shaker with an Overweight rating and price target of SR 82.5, indicating an upside potential of 19 percent. “Key positives for the stock include its market leading position in the air conditioning sector, its domestic manufacturing facility which recently doubled capacity enabling it to meet incremental demand, as well as the scope to expand sales to the government and exports. Key concerns are its exposure to raw material inflation which can pressure margins, ability to compete with cheap Chinese players and any slowdown in government projects,” highlighted Miah. NCB Capital initiated on these two stocks together given their relationship in the product chain; Shaker is primarily a manufacturer of AC units, as well as a distributor of these and other home appliance items. eXtra is a retailer of electronics in general, including AC units and home appliances. “We believe the organized electronics retail sector has good potential to continue growing in the coming years due to increased market share gains from independent stores and positive macro factors such as a growing young population, high household creation and strong government spending which should help support growth in the sector,” explained Miah. NCB Capital\'s main concerns focus on margin pressure due to price based competition, threat of large foreign entrants coming into the market and raw material inflation. For eXtra specifically, pressure on margins may come in the form of product pricing pressure. For Shaker, the pressure on margins may come in the form of raw material inflation. Significant progress on the 500,000 new housing units specifically, and other infrastructure projects in general, are the key catalysts for both Shaker and Extra. This and other government led initiatives should support growth for household appliances and AC units. Continued growth in disposable income will support growth for discretional consumer electronics. Increased sales outside of Saudi (through opening of stores for Extra and exports for Shaker) are an additional catalyst for both stocks. From : Arabnews

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today extra shaker get overweight rating Arab Today, arab today extra shaker get overweight rating

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today extra shaker get overweight rating Arab Today, arab today extra shaker get overweight rating

 



Arab Today, arab today
Arab Today, arab today Designer Aql Faqih aspires to innovation

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation
Arab Today, arab today Italy regions back 'big bang' autonomy

GMT 07:10 2017 Monday ,23 October

Italy regions back 'big bang' autonomy
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Trump: End of Daesh is in sight

GMT 20:29 2017 Monday ,23 October

Trump: End of Daesh is in sight
Arab Today, arab today Maltese demand justice for murdered

GMT 06:08 2017 Monday ,23 October

Maltese demand justice for murdered
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today World's deepest lake in peril

GMT 15:54 2017 Friday ,20 October

World's deepest lake in peril
Arab Today, arab today Ex-French minister Dati wants tough action

GMT 10:54 2017 Thursday ,19 October

Ex-French minister Dati wants tough action
Arab Today, arab today Lost Australia diver swam miles

GMT 19:09 2017 Monday ,23 October

Lost Australia diver swam miles
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Tesla to build wholly-owned plant

GMT 07:55 2017 Monday ,23 October

Tesla to build wholly-owned plant
Arab Today, arab today EU raids automaker BMW

GMT 11:06 2017 Saturday ,21 October

EU raids automaker BMW
Arab Today, arab today Rogina happy for reactions to “The Flood”

GMT 09:30 2017 Friday ,20 October

Rogina happy for reactions to “The Flood”
Arab Today, arab today Delhi braces for pollution 'airpocalypse'

GMT 16:07 2017 Friday ,20 October

Delhi braces for pollution 'airpocalypse'

GMT 08:15 2017 Thursday ,19 October

Actress Mona Zaki praises husband’s role

GMT 18:15 2017 Monday ,16 October

British actress becomes fifth woman

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam

GMT 19:09 2017 Thursday ,19 October

Massacre fears spark race

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 06:07 2017 Sunday ,22 October

15,000 Under Fives Die

GMT 12:54 2017 Saturday ,21 October

Malaysia Airlines picks new CEO

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 20:46 2017 Thursday ,19 October

Qualcomm files lawsuits in China to ban iPhones

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday