Riyadh-Mubasher: Albilad Capital lowered National Agricultural Development Co.’s (Nadec) fair value to SAR 25 from SAR 35.84, assigning the stock an ‘Overweight’ rating.
The think tank said Nadec’s Q4-15 net earnings of SAR 34.4 million missed its estimate of SAR 30 million.
Nadec management will re-price some products and rationalise operating expenses to minimise the impact of such changes, Albilad Capital said.
However, it added that such changes may remarkably pressure profit margins.
Nadec said on Sunday that its net profit for the fourth quarter of 2015 rose by 72% year-on-year to SAR 34.4 million, from SAR 20 million.
