BofA Reaffirms Advanced Petrochemical Co at Buy Amid Expected Volume Growth; Price Objective Down

12:05 PM EDT, 09/16/2026 (MT Newswires) -- BofA Global Research reiterated its buy rating on Advanced Petrochemical Co (SASE:2330) amid expectations of volume growth over the next 12 months, assuming a gradual normalization of sales volumes. "We see earnings inflection in 2H26 driven by improving operations from 3Q26. We see FY27E EBITDA at SAR 1.46bn, 1.8x FY25 EBITDA of SAR 0.8bn at relatively flat PP-propane spreads. We forecast the new PDH plant to contribute SAR 22/sh to our PO. The plant also has started producing premium grade PP since June 2026," analysts said in a report on chemicals companies in the Middle East and North Africa released Tuesday. "However, we remain cautious on our commodity petchems coverage given: the wave of new capacity additions that were expected pre-conflict are likely to start coming through over the medium term. China has been resilient through the crisis supported by feedstock diversification (supported by a mix of naphtha, mixed feed, gas, ethane and coal-based supply) vs peers who rely more on naphtha as feedstock and the country using inventory for demand." Against this backdrop, the stock's price objective was trimmed to 30 Saudi riyals from 31 riyals. The EBITDA estimate for 2026 was also reduced by 8.3%, as analysts lowered their utilization rates for the year amid the continued closure of the Strait of Hormuz. For 2027, the projected EBITDA was bumped 0.6% higher.