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Investing.com - Jefferies initiated coverage on Jahez International Company for Information Systems Technology (TADAWUL:6017) with an Underperform rating and a price target of SAR24.00.
The Saudi food delivery company faces headwinds according to Jefferies, which expects Jahez’s gross order value to be at the lower end of the company’s 2025 guidance, with slower growth projected for 2026-27 due to cautious outlook on Saudi discretionary spending.
While Jefferies acknowledges that Jahez’s shift to logistics should help margins, the firm’s 2025-27 adjusted EBITDA estimates remain 4-6% below consensus expectations.
The research firm expressed concerns about the accretive potential of Jahez’s US$245 million Snoonu acquisition, citing low market share and limited synergies in the deal.
At 2026 estimated 13.1x EBITDA-SBC, Jefferies views Jahez as trading 17% above competitor Talabat with only 3.9% free cash flow yield, creating what it describes as an "unattractive" risk-reward profile with more than 10% downside to its DCF-based price target.
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