Riyad Capital Tweaks Al-Dawaa Medical Services Price Target After Q2 Earnings

05:55 AM EDT, 08/12/2026 (MT Newswires) -- Riyad Capital trimmed the price target on Al-Dawaa Medical Services (SASE:4163) to 40 Saudi riyals as it took note of the medical services company's second-quarter results. "We trim our target price and maintain our Neutral rating, because of the lower earnings base. None of the criteria we set out in our 4Q25 note for revisiting a constructive view has been met: (1) gross and net margins have not stabilized (consolidated gross margin down Q/Q); (2) evidence of accretive store economics from the private-brand, multi-channel etc. appear uncertain; and (3) management communication on the long-term margin profile of the expanded base is still limited, with interim financials pending," analysts said in a Tuesday note. For the second quarter, the company reported a 3% year-over-year decline in sales to 1.64 billion riyals, which was "modestly above" Riyad Capital's estimate of 1.54 billion riyals. Net profit declined 65% annually to 30 million riyals, missing the research firm's estimate of 48 million riyals.