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