Research firm keeps buy rating on Modern Mills
Modern Mills for Food Products is considered one of the attractive companies, with a buy recommendation and a target price of 37.9 SAR per share, indicating a potential increase of up to 32% compared to current trading prices. The company continues to achieve profit growth, as net profit during the second quarter of 2026 rose by 7.6% year-on-year to 53 million SAR, with revenues increasing by 19.6% to 297 million SAR due to higher sales in key sectors and an improved product mix. Expansion plans, such as the animal feed factory and the food ingredients plant, support the attractive valuation of the stock, despite a decline in gross profit margin to 34.7% due to rising cost of sales. Operating profit growth was also slower, increasing by 10.7%, with the operating margin decreasing to 21.4%. Even in a scenario without support from price levels, the price-to-earnings (P/E) ratio is expected to remain at 14.3 times, with projected earnings of 2 SAR per share.
Notice: This Is an AI-Generated Summary
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