AKR Corporindo (AKRA) – Entering Indonesia Energy sector

AKR Corporindo (AKRA) – HOLD (Downgrade)
Price: Rp2,975- Target Price: Rp3,400

Entering Indonesia energy sector

  • Excellent 1H11 performance.
  • 2nd interim dividend.
  • New business in coal mining and coal logistics.
  • We revised our forecast and using DCF calculation we derived a new target price of Rp3,400 reflecting 25.6x – 14.2x PE’11-12F.
  • Therefore, we downgrade our recommendation to investors from BUY to HOLD as the stock only has 14% upside potential and current valuation is higher than JCI valuation at 16.04x PE’11. HOLD
  1. AKRA_110819_YY (635.8 KiB)