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UBS downgraded Indonesian mining company Aneka Tambang Tbk (JK:ANTM:IJ) (OTC:PAEKY) from buy to neutral on Thursday, setting a price target of IDR3,600.00.
The downgrade follows the stock’s significant outperformance, having risen 111% year-to-date compared to Indonesia’s Jakarta Composite Index, according to UBS analyst research.
UBS cited valuation concerns as the primary reason for the downgrade, stating that "risk-reward no longer looks compelling" despite positive fundamentals in the company’s business model.
The firm continues to view Aneka Tambang’s operations favorably, noting its "ability to capitalise on nickel ore supply tightening and rising gold prices in Indonesia" and its "integrated operation shields it from the tight supply-led ore price premium."
UBS also highlighted the mining company’s growth potential, including plans to potentially triple ore sales volume by 2030 compared to 2024 levels and its focus on downstream operations in electric vehicle batteries.
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