Mubasher: Qatar National Bank (QNB) Financial Services reduced the price target (PT) for Industries Qatar by 5.6% to QAR 119 per share, from QAR 126 and maintained "Market Perform" recommendation, with a more conservative approach, according to a recent statement.
QNB Financial Services, the brokerage arm of the region's largest lender Qatar National Bank, on Tuesday cut its estimate for Industries Qatar’s revenue to QAR 16.3 billion in 2019 from QAR 16.6 billion.
Although urea prices have retreated since December 2018, they are expected to witness strong growth of 11% to $290 per metric tonne (MT) in 2019 on the back of growing demand amid environmental regulatory pressures in China.
As for petrochemicals, prices are projected to “have difficulty keeping up with [2018] averages” and tumble 10% in 2019, QNB Financial Services added.
Industries Qatar is forecast to keep a robust balance sheet with cash amounting to QAR 13.1 billion, compared to debt of QAR 26 million in 2019.
The Qatar-listed firm’s profits soared 52% to QAR 5.03 billion in 2018, from QAR 3.31 billion in the prior year and its ordinary general meeting approved cash dividend distribution of QAR 6 a share.
By 12:06 pm Qatar time, Industries Qatar’s stock fell 6.77% to QAR 121.68.
