Equity Analysis /

Altayyar Travel Group: Attractive valuation supported by new strategy

    Tellimer Research
    1 May 2018
    Published byTellimer Research
    We remain Overweight on Altayyar with a revised PT of SR34.0. We expect Altayyar to be one of the beneficiaries of growth in Hajj and Umrah, supported by its new strategy which focuses on new services and improving efficiency. We expect Altayyar earnings to remain flat in 2018E and to grow by 19.5% YoY in 2019E to SR601mn driven mainly by lower investment losses, as well as higher revenues. The
    stock is trading at 2018E P/E of 11.3x, significantly lower than the peers group of 27.1x, which we believe is not justified.