Saudi Kayan Kept at Underperform as BofA Notes Cautious Outlook for Key Commodity Chemicals

08:25 AM EDT, 09/16/2026 (MT Newswires) -- BofA Global Research maintained its underperform rating on Saudi Kayan Petrochemical (SASE:2350), mainly due to a continued cautious outlook for certain key commodity chemicals amid heightened geopolitical uncertainty in the Middle East. "We remain cautious on the multi-year outlook for Kayan's key products: polycarbonates and [mono-ethylene glycol], which account for c.40% of revenues. Valuation is significantly higher than regional peers. One of the most levered petchems in our coverage," the research firm said in a note focused on chemical companies in the Middle East and North Africa published Tuesday. Meanwhile, the EBITDA forecast for 2026 was cut by 6.2%, as analysts reduced their earnings assumptions for the year on the back of higher logistics costs related to shipping products from Saudi Arabia's West Coast. For 2027, the EBITDA estimate was raised by 1.9%. The stock's price objective of 4.60 Saudi riyals remains unchanged.