On Friday, JPMorgan upgraded Indocement Tunggal Prakarsa Tbk PT (INTP:IJ) (OTC: PITPF) stock from Underweight to Neutral and increased the price target to IDR7,350.00, up from the previous target of IDR5,800.00.
This adjustment follows a period in which the company demonstrated effective cost control measures throughout 2024, which bolstered earnings despite a downward trend in Average Selling Price (ASP).
Indocement's performance in the stock market has notably outperformed its peer, Semen Indonesia (SMGR), by approximately 20%. This is attributed to the company's superior earnings delivery over the past year. JPMorgan's analysis suggests that 2024 may represent the lowest point in Indocement's earnings cycle.
The firm forecasts a 12% increase in earnings for Indocement in 2025, which is considered to be a smaller growth compared to Semen Indonesia due to the belief that there is limited room for further cost savings after the significant measures taken in 2024. For 2026, JPMorgan anticipates flat earnings for Indocement, factoring in the expiration of the Bosowa lease agreement.
The upgrade and new price target reflect JPMorgan's assessment of Indocement's recent financial performance and its prospects for the coming years. This outlook is based on the company's past achievements in cost management and projected earnings growth, despite the less optimistic view for 2026.
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