Lumi Rental's Hold Rating Retained as United Securities Notes Q2 Results; Price Target Updated

04:56 AM EDT, 09/11/2026 (MT Newswires) -- United Securities LLC maintained its hold rating on Lumi Rental Co (SASE:4262), with the price target revised to 29.50 Saudi riyals from 38 riyals, following the company's second-quarter results. The Saudi Arabia-based car rental company posted an 80% year-over-year decline in attributable net profit to 10.8 million riyals, "significantly" missing the research firm's estimates, according to a Thursday note. Revenue also fell 5.2% to 394.4 million riyals, which analysts attributed to "weaker" rental activity. "While revenue was broadly in line with our expectations, profitability and overall margins underperformed due to higher-than-expected costs. Based on the current results, we retain our 2026e revenue forecast of SAR 1.6bn, but reduce our net profit to SAR 144mn (from SAR 167mn). We remain conservative as growth risks remain elevated amid ongoing geopolitical tensions," analysts said. "The stock price has fallen significantly reflecting the systemic weakness in the sector, hence despite our downgrade there is a potential upside of 7.6% from current levels."