Kalbe Farma (KLBF) – HOLD (Downgrade)
Price: Rp3,650 – Target Price: Rp3,375
Performance meet expectations
- In-line FY10 audited results.
- Nutritionals division outperforms compared to the other divisions with 18.4% YoY growth while Consumer health division underperform.
- New pharmaceuticals facilities for generic drugs tablet and oncology drugs.
- Our DCF valuation suggest a new fair value of Rp3,375 implying 19.85x PE’11F.
- We downgrade our recommendation to Hold with 8% downside as current market price has exceeded our TP and trading at 21.4x PE’11F. HOLD