BofA cut target for Saudi Arabian Fertilizer stock

Published on 10/09/2026 at 13:29 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

BofA's SAR 158.00 target for Saudi Arabian Fertilizer stock followed a cut from SAR 170.00. Revenue fell to SAR 2.41 billion.

Key points in brief

Bank of America cut its Saudi Arabian Fertilizer target from SAR 170.00 to SAR 158.00 on September 16, 2026.
The company approved a 2.6 million tonne annual urea project that would lift capacity to 7.4 million tonnes.
Second-quarter 2026 revenue was SAR 2.41 billion and net income was SAR 379.00 million.
The latest Tadawul quote was SAR 116.70 on October 8, 2026, versus a SAR 118.90 prior close.

Saudi Arabian Fertilizer, SA0007879139, Illustration mit AI erstellt.

Bank of America cut its price target for Saudi Arabian Fertilizer stock from SAR 170.00 to SAR 158.00 on September 16, 2026. As Finimize reported, the bank still expected urea prices to remain supported from the fourth quarter of 2026 through the first half of 2027, but cited softer volumes and higher logistics costs.

Three events shape the stock

On July 26, 2026, the latest reported quarter produced revenue of SAR 2.41 billion and net income of SAR 379.00 million, according to Investing.com. Revenue fell from SAR 2.87 billion in the first quarter of 2026, while net income dropped from SAR 1.23 billion.

On September 10, 2026, the board approved a 2.6 million tonne annual urea facility, with commercial production scheduled for the fourth quarter of 2030. Argus reported that the project also includes 1.2 million tonnes of annual ammonia capacity.

On September 16, 2026, the target cut became the latest of the three dated developments. The sequence puts near-term earnings pressure beside a long-dated capacity expansion, explaining why the target reduction matters even with a constructive urea outlook.

What does the project change?

The facility would lift annual urea capacity to 7.4 million tonnes from 4.8 million tonnes, an increase of 2.6 million tonnes. Argus also reported a USD 3.50 billion engineering, procurement and construction contract awarded to Samsung, with construction planned to start in the fourth quarter of 2026.

The financial trade-off is visible in the latest quarter. Revenue declined by SAR 463.00 million from the first quarter, while net income fell by SAR 848.00 million. The company generated SAR 770.62 million of operating cash flow in the second quarter, compared with SAR 687.84 million in the first quarter, according to the financial statement data.

Tadawul valuation context

SABIC Agri-Nutrients Company trades as 2020.SR on Tadawul under ISIN SA0007879139, according to Global Banking and Finance Review. Its latest quoted Tadawul value was SAR 116.70 on October 8, 2026 at 3:11 p.m. AST, down 1.85 percent from the SAR 118.90 prior close.

The 52-week Tadawul range was SAR 108.30 to SAR 159.30 as of October 8, 2026. Market capitalization stood at SAR 55.6 billion, keeping the share price 26.81 percent below the 52-week high and 7.76 percent above the 52-week low.

Price and project timing

For investors tracking the fertilizer cycle, the key tension is measurable: 7.4 million tonnes of future urea capacity against second-quarter revenue of SAR 2.41 billion and net income of SAR 379.00 million. The next major operating milestone is construction planned for the fourth quarter of 2026, while commercial production is scheduled for the fourth quarter of 2030.