Indonesia Stock Exchange (JCI)
Price: 3,531.2 – Target Price: 4,209
Deserve a Premium
- JCI has impressively outperformed regional peers YTD’10 supported by rising risk appetite on Emerging Asian nations, strong capital flows and accelerated corporate earnings growth.
- We view that JCI deserves to be traded at premium due to resilient economy and improvement in the country rating comparable to BRIC countries.
- Using bottom-up approach, we set our 2011 index target at 4,209, supported by higher earnings growth, strong fund flows and investment rating upgrades.
- Our target index implies 19.2% upside and 2011 PER of 16.7x.
Our top sector picks are:
- Energy & Resources
- Market Outlook 2011 Deserve-premium (800 KiB)