Credit Suisse remains bullish on Sabic

19 October 2010

The Saudi Stock Exchange failed to sustain the positive momentum from the start of the week and closed 0.35% lower on Tuesday at 6,263.61, mainly due to losses in the banking and utilities sector. Shares of petrochemical giant Sabic recovered further, adding 0.27% to close at SR91.25. Mohamad Hawa, a GCC research analyst at Credit Suisse in London, wrote in an analysis from today, that “Sabic’s third quarter results have surpassed retail investors’ expectations and are likely to see a rally over the next few trading sessions.” Earlier in the week, Sabic reported its 3Q 2010 results with a net income of SR5.33bn (up 46% year-on-year and 6% quarter-on-quarter) 21% ahead of Credit Suisse’s estimates and 14% ahead of consensus. “We remain bullish on the stock and maintain our Outperform rating and 12-month target price of SR120 per share”, Hawa concluded.

The Saudi Stock Exchange failed to sustain the positive momentum from the start of the week and closed 0.35% lower on Tuesday at 6,263.61, mainly due to losses in the banking and utilities sector. Shares of petrochemical giant Sabic recovered further, adding 0.27% to close at SR91.25. Mohamad Hawa, a GCC research analyst at Credit Suisse in London, wrote in an analysis from today, that “Sabic’s third quarter results have surpassed retail investors’ expectations and are likely to see a rally over the next few trading sessions.” Earlier in the week, Sabic reported its 3Q 2010 results with a net income of SR5.33bn (up 46% year-on-year and 6% quarter-on-quarter) 21% ahead of Credit Suisse’s estimates and 14% ahead of consensus. “We remain bullish on the stock and maintain our Outperform rating and 12-month target price of SR120 per share”, Hawa concluded.

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