Gold prices cool after hitting over 2-week high on Fed independence fears
On Tuesday, Jefferies analysts initiated coverage on Alinma (TADAWUL:1150) Bank stock (ALINMA:AB) with a Hold rating and set a price target of SAR29.50. The analysts noted that Alinma Bank has experienced a significant increase in its return on tangible equity (ROTE), doubling from 8.4% in 2020 to 17.8% in 2024. This improvement was attributed to a strategic overhaul led by the new management team that took over in early 2021.
The management’s strategy focused on expanding into previously underutilized segments such as small and medium-sized enterprises (SMEs), mid-tier corporations, and high-net-worth individuals (HNWI). The bank also enhanced its treasury, risk management, product design, and distribution capabilities, supported by advancements in technology and customer engagement.
Despite the positive view on Alinma Bank’s management quality and recent liquidity trends, Jefferies analysts expressed a preference for the franchise but maintained a Hold rating on the shares. They highlighted the relatively limited potential upside of 14% to the SAR29.50 price target for December 2026.
Additionally, the analysts noted that the bank’s dividend yield of approximately 4.5% is less attractive compared to peers such as Saudi National Bank (SNB) and Riyad Bank (RIBL). This was a factor in their decision to initiate coverage with a Hold rating.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.