Banque Saudi Fransi Rating, Price Objective Raised as BofA Notes Profitability-Focused Strategy

12:26 PM EDT, 08/27/2026 (MT Newswires) -- BofA Global Research lifted its rating and price objective for Banque Saudi Fransi (SASE:1050), highlighting the Saudi Arabia-based lender's "clear" profitability-focused strategy. The neutral rating on the stock was upgraded to buy, while the price objective was revised to 26.10 Saudi riyals from 21.30 riyals, according to a Wednesday note. "We believe the stock's YTD outperformance reflects confidence in management's clear strategy on [non-funded income-led] growth. At 9.6x P/E and 1.2x P/BV (2027E), we see value in the name led by: 1) 9% 3Y EPS CAGR, amongst the highest in KSA, with risks to the upside based on 2030 Strategy targets, 2) upside to consensus EPS estimates in 2027/28E, and 3) valuation discount potentially narrowing as management demonstrates its strategy execution capabilities," analysts wrote. The research firm also increased its EPS forecasts by 2.7% for 2026, 6.1% for 2027 and 6.3% for 2028. The EPS compound annual growth rate is now projected to come in at 9% over the three-year period, while return on average equity is anticipated to improve to 14% by 2030 from 12% in 2026. "We think investors are increasingly willing to underwrite the strategy, but the next phase of stock performance will depend on evidence of execution rather than strategic announcements," BofA noted.