Bank Mandiri (BMRI) – Maintain Buy
Price: Rp7,050 – Target Price: Rp7,800
Solid Operational Performance
- As of 9M10, BMRI recorded net interest income and net income of Rp14.7 tr and Rp6.4 tr, in line with our projection.
- Net interest income was supported by the low cost of fund and increase on asset yield.
- We estimate that there are two potential debtors that will be paying off their debts by next year.
- We maintain our forecast and upgrade our price target to Rp7,800, as we change our cost of equity 16% and roll forward base year. Maintain Buy.