Riyad Bank Initiation (TP: SAR 29.0, Neutral): Strong fundamentals, undemanding valuations
Our TP represents a 9.3% upside to Riyad Bank’s current share price and is based on peer average 2024E P/B of 1.6x. Currently, Riyad Bank's P/B ratio stands at 1.4x (Q3 2024 BVPS, closing price), lower than its historical valuation levels (5-year average of 1.72x and 3-year average of 1.66x), bolstering our view that a trend reversal is in the offing for the share’s YTD underperformance.