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Investing.com - JPMorgan downgraded Aldrees Petroleum & Transport (TADAWUL:4200) from Overweight to Neutral while raising its price target to SAR150.00 from SAR145.00.
The downgrade comes despite JPMorgan’s expectation that Aldrees will achieve 12% EBIT growth and 19% net profit growth in 2026, supported by new station additions and momentum in the transport division.
JPMorgan noted that operating expense pressures have been mounting in the fuel retail sector in 2025, prompting the firm to trim its forecasts for the company.
The investment bank highlighted that Aldrees shares currently trade at an 80% premium to the Saudi consumer sector median on 2026 price-to-earnings ratio, reflecting the company’s solid fundamentals and execution.
JPMorgan sees limited scope for earnings upgrades and further re-rating, describing the risk-reward profile for Aldrees as "balanced" despite the company’s continued market consolidation strategy and healthy cash generation.
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