Jarir Marketing: Quality story, but you have to read to the end: Buy

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Jarir Marketing: Quality story, but you have to read to the end: Buy

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Jarir Marketing

Quality story, but you have to read to the

end: Buy

Reinstating Coverage: BUY | PO: 20.90 SAR | Price: 17.02 SAR

SAR20.90 PO implies 23% upside for patient investors 02 July 2026

We reinstate coverage on Jarir with a Buy rating, based on 23% potential upside per our Equity

DCF-derived PO of 20.90. We see: (i) continuing smartphone and computer leadership,

mature markets but benefiting from near-term iPhone 17 momentum to drive 7.0% sales Mohsen Ameeri >> Research Analyst

growth in 2026E, (ii) profitable e-commerce execution; online going from 32% to 50% of Merrill Lynch KSA Company

sales 2025A–28E and operating leverage from store labour redeployment expanding +966mohsen.ameeri@bofa.com112 993 741

channel margins by 357bps to 9.9% in 2030E, and (iii) an inflection for distributions in Michael Jacks, CFA >>

2029E, with 10% DPS growth in that year after Jarir hits its target of 90+ stores. Research Analyst

Merrill Lynch (South Africa)

High-quality business continuing to pivot product… +27michael.jacks@bofa.com113 055 158

Jarir is very impressive at retail execution: it has maintained market share leadership in Jameel Bakhsh, CFA >>

smartphones despite a ~20% consumer shift away from its marquee iPhone product to ResearchMerrill LynchAnalyst(DIFC)

Android in 2021A-25A. As 98.4% of Saudis use a smartphone, we see a reliable revenue +971 4 425 8252

jameel.bakhsh@bofa.com

stream growing at a 4.7% CAGR 2025A-30E. Jarir should also remain the trusted partner

for business-grade IT, generating SAR7.3bn of cumulative laptops & tablets revenue

2026E-30E (19.7% of total cumulative revenue over the period). We also model 47bps of