JPMorgan downgrades Indocement stock to Neutral after 30% outperformance

Published 12/08/2025, 12:52
JPMorgan downgrades Indocement stock to Neutral after 30% outperformance

Investing.com - JPMorgan has downgraded Indocement Tunggal Prakarsa Tbk PT (INTP:IJ) from Overweight to Neutral while raising its price target to IDR6,475.00 from IDR6,100.00.

The downgrade follows the cement producer’s 30% outperformance against the MXID index over the past three months, which JPMorgan believes has largely captured the value dislocation it identified in a March 26 report.

According to JPMorgan’s valuation framework, Indocement stock now trades at a 60% discount to replacement cost, relatively in-line with the return on invested capital relative to the cost of capital.

The firm noted that Indocement has begun implementing its IDR2.25 trillion share buyback program, with approximately 2% of the total allocation executed since early August 2025, which should limit downside risk.

JPMorgan identified a meaningful turnaround in volume and higher dividend payout as key catalysts for further stock appreciation, though it considers these unlikely to materialize in the near term, with the next dividend not scheduled until May 2026.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.