Indofood Sukses Makmur (INDF) - Bogasari Plant Visit

INDF – HOLD (Downgrade)
Price: Rp6,500 – Target Price: Rp6,000

Bogasari plant visit

  • Largest domestic wheat producer.
  • Strong brand and variety of products.
  • INDF 2nd revenue driver.
  • Maintaining market share.
  • Potential of newcomers.
  • INDF is trading at 18.2x PE11F vs. average sector peers of 18.9x PE’11.
  • We maintain our target price of Rp6,000.
  • However, we downgrade our recommendation to Hold as the current market price is trading at a premium compared to our TP and has reflected the estimated fair value of the stock. HOLD