Budget Saudi Price Target Revised at Aljazira Capital After Q1 Earnings

06:30 AM EDT, 07/23/2026 (MT Newswires) -- Aljazira Capital updated its price target for United International Transportation Co. (SASE:4260), d/b/a Budget Saudi, as it took note of the company's first-quarter results and the potential effect of the regional conflict on its profitability in 2026. "While recent regional re-escalations are projected to weigh on short-term rental demand and exert near-term pressure on operating margins, steady used vehicle prices should partially mitigate these headwinds. Consequently, we expect net income to fall to SAR 245mn in FY26E before staging a robust recovery toward SAR 390mn by FY28E as macroeconomic conditions normalize and core growth drivers re-engage," analysts said in a Thursday note. "We believe these near-term headwinds are largely reflected in the current share price. Trading at an attractive P/E of 9.2x FY27E, Budget offers compelling upside as profitability recovers. Accordingly, we maintain our 'Overweight' recommendation with revising down target price to SAR 41.0/share (from earlier SAR 62.1/share)." For the first quarter, the car rental services company logged a 1.6% year-over-year increase in revenue to 552 million Saudi riyals, while the company's net income reached 34.4 million riyals.