‎SICO sets SNB, SABB, Jarir, Leejam, Saudi Ceramic as ‘top picks’, recommends ‘Buy’

‎SICO sets SNB, SABB, Jarir, Leejam, Saudi Ceramic as ‘top picks’, recommends ‘Buy’

SICO Capital named Saudi National Bank (SNB), Saudi British Bank (SABB), Jarir Marketing Co., Saudi Ceramic Co. and Leejam Sports Co. (Fitness Time) as top picks for GCC stocks and recommended a “buy” rating on them.

SICO Capital expects SNB’s growth over the coming two years to attract huge investments, forecasting the bank’s loan portfolio to rise 13% in 2022, while corporate, consumer and mortgages are seen to record strong performance.

SNB could capitalize on loan-growth opportunities in the Kingdom’s megaprojects and “Shareek” program, SICO said in a report.

On the other hand, SABB has a strong business plan for the coming two years. The bank is well-positioned to leverage on rising demand from corporations as well as higher interest rates.

SICO expected SABB credit portfolio to grow 10% on average over the coming two years.

As for Saudi Ceramic, the company is projected to see improved pricing as a result of demand recovery, thanks to the anti-dumping duty.

Elsewhere, Jarir’s robust cash flows accompanied by limited capital expenditure give ample room for richer dividends over the coming quarters, according to SICO.

Jarir is forecast to capitalize on higher-margin stationery sales, representing 15-20% of the company’s gross sales, SICO indicated, adding that the company eyes more store