Stock Name: IndoAgri
Company Name: INDOFOOD AGRI RESOURCES LTD.
CIMB in a June 10 research report says: "Indofood Agri's 72%-owned PT Salim Invomas Pratama (PT SIMP) gained 14% to Rp1,250 a share during its trading debut. PT SIMP now offers cheaper and direct exposure to Indofood Agri's assets. This could result in investors switching their holdings, potentially creating a share overhang for Indofood Agri.
"We are leaving our earnings forecasts unchanged but have downgraded our target price for Indofood Agri by 2% to $1.90 as we switch our valuation method to a 10% discount to its sum-of-the-parts valuation from 12x forward P/E.
"We believe its share price has adjusted for the negative impact, having shed 19% since we downgraded it to underperform on May 23. We recommend investors to switch to PT SIMP which offers higher (37%) upside to our target value of Rp1,713 a share. UPGRADE TO NEUTRAL."
Company Name: INDOFOOD AGRI RESOURCES LTD.
| Research House: CIMB | Price Call: HOLD | Target Price: 1.90 |
CIMB in a June 10 research report says: "Indofood Agri's 72%-owned PT Salim Invomas Pratama (PT SIMP) gained 14% to Rp1,250 a share during its trading debut. PT SIMP now offers cheaper and direct exposure to Indofood Agri's assets. This could result in investors switching their holdings, potentially creating a share overhang for Indofood Agri.
"We are leaving our earnings forecasts unchanged but have downgraded our target price for Indofood Agri by 2% to $1.90 as we switch our valuation method to a 10% discount to its sum-of-the-parts valuation from 12x forward P/E.
"We believe its share price has adjusted for the negative impact, having shed 19% since we downgraded it to underperform on May 23. We recommend investors to switch to PT SIMP which offers higher (37%) upside to our target value of Rp1,713 a share. UPGRADE TO NEUTRAL."
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