Al Rajhi Capital revises Saudi Ceramic’s target price to SAR 36 per share on TSAIP finding

Al Rajhi Capital re-evaluated the outlook for Saudi Ceramic and revised the company’s share target price from SAR 30 to SAR 36 per share.

The brokerage firm said in a research note that the GCC Bureau of Technical Secretariat for Anti Injurious Practices in international trade (TSAIP) has announced an anti-dumping duty, ranging from 5.8% to 106% on Indian, Chinese and Spanish tiles manufacturers.

“We believe this news to have a positive impact on the GCC tiles manufacturers such as Rak Ceramics, Al-Anwar Ceramics and Saudi Ceramics,” the brokerage firm said.

“The average anti-dumping duty stands at 40% as per our understanding. In our earlier re- initiation coverage report published on Nov. 4, 2019, we didn’t include any impact of anti-dumping duty due to lack of clarity on decision,” it added.

Al Rajhi Capital has revised its forward looking estimates and increased the target price of Saudi Ceramics to SAR 36 per share, implying a further 25% upside from current market price.