Aljazira Capital Cuts Alkhorayef Water Price Target After Q2 Results

MT Newswires · 3d ago
06:50 AM EDT, 08/06/2026 (MT Newswires) -- Aljazira Capital revised its price target and 2026 estimates for Alkhorayef Water and Power Technologies (SASE:2081) after taking note of the company's second-quarter results. "Overall, we estimate AWPT to exceed the upper end of its 9-11% FY26E net margin guidance. Long-term profitability is expected to recover steadily, with gross margins reaching 20.4% and net margins expanding to 12.6% by FY30E (after dipping to 19.2% and 11.0% respectively in FY27E), maintaining a strong double-digit net income CAGR (11.1%) over the forecast period. Following our revision to estimates we reduce TP on AWPT to SAR 141.4/share (from SAR 161.5)," analysts wrote on Wednesday. For the second quarter, the water and wastewater management company logged a net profit of 64 million Saudi riyals, which aligned with Aljazira's forecast of 62 million riyals. Revenue, meanwhile, declined 19.8% year over year amid project handovers and slower initial revenue recognition.