Riyad Capital Upgrades Al Rajhi Bank to Buy After Q2 Results

01:21 AM EDT, 07/22/2026 (MT Newswires) -- Riyad Capital said Tuesday it upgraded its rating for Al Rajhi Bank (SASE:1120), noting the Saudi-listed lender's second-quarter results. Al Rajhi Bank posted a 13% year-over-year increase in operating income to 10.88 billion Saudi riyals, in line with the research firm's forecast of 11 billion riyals. Meanwhile, net income for the quarter was up 14% on an annual basis to 7.01 billion riyals, consistent with Riyad Capital's 7 billion-riyal estimate. "The bank continues to deliver solid performance, maintained its leading position on return metrics, with [return on equity and return on assets] at 23.7% and 2.7%, respectively, for 2Q26. Al Rajhi currently trades broadly in line with its historical premium to peers. We see room for a modest re-rating, with our justified P/BV of 3.2x implying upside to the current valuation, supported by the bank's superior ROE and resilient earnings profile," the note said. Against this backdrop, analysts upgraded Al Rajhi Bank to buy and reiterated its price target of 76.67 riyals.