Investing.com - JPMorgan has upgraded Jasa Marga Persero (JSMR:IJ) (OTC:PTJSF) from Neutral to Overweight and raised its price target to IDR5,175.00 from IDR5,000.00, representing a potential 47% upside.
The upgrade comes as Jasa Marga has underperformed the Jakarta Composite Index by more than 30% year-to-date, driven by multiple de-rating as investors discount potential risks of asset transfers from SOE Karyas under Danantara’s management.
JPMorgan believes the market is overestimating the probability of asset transfers from WSKT, noting that the stock currently trades at a historical low of 7x P/E, presenting an attractive risk-reward opportunity.
The firm’s analysis indicates that even in a worst-case scenario of transferring WSKT’s toll road assets into Jasa Marga’s portfolio, the immediate downside risk to the company’s 2026 earnings would be approximately 40%, or about IDR1.4 trillion.
JPMorgan expects a 25 basis point Bank Indonesia rate cut in December, which it views as a near-term catalyst for the stock, while its new price target is based on an 11x P/E multiple.
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