Aljazira Capital Keeps Astra Industrial Group Rating After Q2 Performance

05:39 AM EDT, 08/27/2026 (MT Newswires) -- Aljazira Capital maintained its investment view on Astra Industrial Group (SASE:1212) as it took note of the industrial holding company's second-quarter results. "We remain 'Neutral' on Astra Industrials with a target price of SAR 142.0/share, reflecting a balanced risk-reward profile amid moderate medium-term topline growth, improving earnings quality and normalization of elevated margins across certain businesses. Our target price is based on a 50:50 blended approach between DCF and relative valuation," analysts wrote in a Saudi Arabia pharmaceutical sector report published Wednesday. Thanks to growth in its pharma segment, the company logged an 8.5% year-over-year increase in revenue, while net income rose 9.7% during the quarter. "We expect consolidated revenue to remain broadly flat in FY26 before recovering 5.5% in FY27E, primarily driven by Pharma, while growth across the non-Pharma businesses remains constrained. Thereafter, we expect Pharma to remain the key growth engine, supported by its strategic agreements across GLP-1, oncology and specialty medicines and the launch of patent-expired products, while Energy & Steel should gradually recover from FY27E as traction builds around major projects including King Salman Park, Expo 2030 and FIFA World Cup 2034," analysts added.