June 16 - Almarai Co's recent acquisitions could add up to 5 percent to the Saudi dairy firm's earnings per share in 2010, and has significant potential beyond, NCB Capital said.
Almarai, the Gulf's largest dairy firm by market value, has engaged over the past 18 months in an aggressive expansion drive that included takeovers of listed and non-listed firms in the Middle East.
"We believe these acquisitions and transfers are in line with Almarai's aim to expand geographically as well as realign itself into becoming a food company versus a dairy company," NCB Capital said.
The brokerage kept its "neutral" rating and price target of 156 riyals on shares of Almarai.
Last week, the company agreed to buy Egyptian firm Beyti for $115 million, its second acquisition since December, when it acquired a 75 percent stake in Jordanian dairy and juice firm Teeba for $126.4 million.
In May, Almarai agreed to take over Hail Agricultural Development (Hadco) , the fourth-largest poultry producer in Saudi Arabia, in a share swap deal.