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Investing.com - Citi has initiated coverage on Alamtri Minerals Indonesia (ADMR:IJ) with a Buy rating and a price target of IDR1,500.00.
The company is transitioning from a pure metallurgical coal business to one that will include aluminum production starting in late 2025, according to Citi’s research note.
By 2027, Citi expects Alamtri Minerals to double its net profit after tax, driven by continued metallurgical coal capacity expansion of 1 million tonnes per annum in the medium term and full ramp-up of its aluminum smelter to 500,000 tonnes per annum.
Citi notes that Alamtri appears well-positioned to benefit from growing domestic metallurgical coal consumption and a potential uptick in global growth related to aluminum, humanoid, and decarbonization demand.
The research firm states it maintains a structurally bullish outlook on aluminum as a commodity.
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